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TMI Blog1989 (7) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... Duties) Act, 1955 (hereinafter referred to as `the Act') the respondents became liable to pay duty in accordance with Section 3 of the Act read with Schedule to the Act. They further became liable to obtain licence, but they neither paid duty nor obtained licence. The Commercial Tax Officer issued notices to the respondents in exercise of his powers under Rule 12 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956 directing them to pay duty on all medicinal preparations manufactured by them after 1-6-1961. The notices were in the shape of notice of demand requiring the respondents to pay the duty which they had failed to pay in accordance with the Act and the Rules on the use of tincture in manufacturing medicinal preparati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds are manufactured in bond, in the State in which such goods are released from a bonded warehouse for home consumption, whether such State is the State of manufacture or not; (b) where the dutiable goods are not manufactured in bond, in the State in which such goods are manufactured. (3) Subject to the other provisions contained in this Act, the duties aforesaid shall be collected in such manner as may be prescribed." Excise duty is imposed by Section 3 on the manufacture of dutiable goods at the rates specified in the Schedule. Sub-section (2) indicates the stage at which the duty is to be levied. Section 3(3) provides for collection of duty, it lays down that it shall be collected in such manner as may be prescribed by Rules made unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or levy and refund of, and, exemption from duty. Rules 6 to 17 relate to recovery, exemption and refund of duty. Rule 6 requires every person who manufactures any dutiable goods, or who stores such goods in a warehouse to pay the duty on such goods, at such time and place as may be designated. Rule 9 prescribes time and manner of payment of duty. According to this Rule no dutiable goods shall be removed from any place where they are manufactured either for consumption or for export, outside such place until the excise duty leviable thereon is paid at such place and in such manner as prescribed in the Rules or as the Excise Commissioner may require. Rule 11 provides for recovery of duty or charges which may have been short-levied though inad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other sum payable to the collecting Government under the Act if the same is not paid on account of short-levy or deficiency or for any reason. In substance, Rule 12 contains additional safeguard for recovery of duty, it does not create any additional charge or liability on the manufacturer for the payment of the duty. The liability to pay tax is created by the charging Section 3 and Rule 12 confers, on the authorised officer to recover duty if the same has not been paid on account of any short-levy or deficiency or any other reason. Rule 12 is referable to Section 19(2)(i) of the Act. The Rule carries out the purposes of the Act as it seeks to provide for recovery of duty as contemplated by Section 3(3) of the Act. The High Court committe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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