TMI Blog1956 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 52/43 and later numbered as T.L. 5/14/44 from the Central Excise Department for storage of non-duty paid tobacco of cheroot and bidi varieties in his private bonded warehouse in Palakarai, Central Excise Range, Tiruchirapalli. In respect of that licence both the defendants executed a bond, the first defendant being admittedly a surety. The bond was for a sum of Rs. 5,000/- dated 31st August, 1943. The licence appears to have been renewed year after year till 1947 but no fresh security bond was taken from the defendants. It is found that the second defendant had not properly accounted for certain stock of non-duty paid tobacco in the year 1946. The Excise department suffered loss to the extent of Rs. 1,279/11/00 caused by way of failure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defendants shall observe all the provisions of the Tobacco (Excise Duty) Rules, 1943 to be observed in respect of bonded warehouses, that the defendants shall pay into the treasury to the account of the Collector of Central Excise, Madras, all dues, whether Excise duty and other lawful charges which shall be demandable on the tobacco admitted to the warehouse as shown by the records of the proper officer of Central Excise within ten days from the date of demand thereof being made in writing by the said office of the Central Excise and then the obligation shall be void. This objection as to the first defendant not holding himself liable as surety for any period beyond the period for which the licence was issued in T.L. 2 No. 454 of 1943 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licence, for which the bond was executed there would be the liability of the surety. Rule 155, however, would not help the Excise Department for the reason that what the Collector could dispense with was only the execution of a fresh bond when the goods are removed to another warehouse. It does not mean that no bond would be necessary if the goods are removed to another warehouse after the expiry of the period of licence for which the security bond was executed. It is only if during the continuance of the licence for any particular period the goods are removed to another warehouse no fresh bond would be necessary. Rule 155 could not be construed as to dispense with the obtaining of a fresh bond in respect of the removal of goods to another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ader that it is not as if the first defendant was not aware that he would be made liable for the dues in respect of the tobacco admitted into the warehouse of the second defendant, since he has himself written on 21st August, 1947 under Ex. B-1 to the Assistant Collector of Central Excise pointing out that the licensee is trying to dispose of the balance of tobacco without the knowledge of the authorities. But it must be noted that he refers therein to the licence No. L. 5 No. 14/44. It cannot be that he was really aware of the implications of his letter as to his liability for any period subsequent to the period covered by the said licence. It may be that by way of abundant caution he wrote this letter to the Excise authorities as to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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