Curer's excise duty liability ends once transfer of tobacco ownership is reported to the proper officer.

A curer's liability for excise duty on cured tobacco under Rule 29 of the Central Excise Rules, 1944 ends when the transfer of ownership is reported to, and acknowledged by, the proper officer having jurisdiction over the curer's premises. The "proper officer" refers to the officer within whose jurisdiction the curing operation is carried on, while the transferee warehouse licensee remains answerable to the officer in charge of the transferee's premises. Once the curer has followed the prescribed procedure, liability cannot be extended merely because the transferee's local officer was not informed. The duty demand was therefore unsustainable.

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Issues: Whether the curer's liability to pay excise duty on cured tobacco continued under Rule 29 of the Central Excise Rules, 1944, after the tobacco was transferred under a valid transport permit and the transfer of ownership had been reported to the proper officer at the place where the curing was done.

Analysis: The liability of a curer under Rule 29 continues only until the transfer of ownership of the tobacco is reported to and acknowledged by the proper officer. The expression "proper officer" in Rule 2(xi) refers to the officer within whose jurisdiction the curer's premises are situated and where the curing operation is carried on. Rules 19, 24, 26 and 31 show that the curer's obligation is to account for the goods to that officer, while the transferee warehouse licensee is separately answerable to the officer having jurisdiction over the transferee's premises. Once the curer has complied with the prescribed procedure and has reported the transfer to the officer competent in relation to him, the liability cannot be continued merely because the transferee's local officer has not been informed.

Conclusion: The duty demand against the petitioner was unsustainable, and the curer's liability had ceased upon reporting and acknowledgment by the proper officer at Dharapuram.

Ratio Decidendi: Under Rule 29 of the Central Excise Rules, 1944, a curer's liability for duty ends when the transfer of ownership is reported to and acknowledged by the proper officer having jurisdiction over the curer's premises, and not the officer having jurisdiction over the transferee.

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