TMI Blog1964 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... s to convert into package tea into the licensed premises. The packaging which is a process of manufacture under the Act, involves excise duty, and on such package tea he has to pay excise duty on its removal from the licensed premises. In case he does not convert the loose tea into package tea he is permitted to remove the loose tea as such from the licensed premises free of duty on submitting wha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to bring all his loose tea purchased into the premises was taken by the Assistant Collector of Central Excise to indicate that the petitioner. "Should have therefore manufactured this tea into package tea and removed the same without payment of duty due thereon." Accordingly a show cause notice was issued and the licensee, in reply to the notice pointed out that insofar as loose tea that he pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. V. Ramaswami, learned Counsel for the Department, does not deny that there is no evidence at all that the petitioner dealt with this quantity of tea as package tea. But he was at pains to make out that the rules require that a person who holds a L-4 licence for package tea must necessarily bring all his purchases of loose tea into the licensed premises. He has referred to Rules 9 and 50 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to prevent evasion of duty. But what I am concerned with is whether any such restriction upon the business of an individual who happens to take out a licence for manufacturing tea, is made out by the rules. There is no provision which compels the licensee not to deal in loose tea as such except by bringing it into his licensed premises. It may be that, as learned counsel says, this may lead to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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