Rewarehousing certificate requirement keeps consignor liable for excise duty until the bond is formally discharged.

A consignor who applies for transport of non-duty-paid excisable goods, executes the required bond, and removes the goods from one warehouse to another remains liable until the rewarehousing certificate is produced and the bond is discharged. Delivery to the consignee does not by itself satisfy the statutory conditions under Rules 153, 156-A and 156-B. Where the goods are not rewarehoused and the certificate is not filed within the prescribed time, liability for the duty on the unaccounted goods continues to rest on the consignor, even if the consignee fails to warehouse them. The duty demand was therefore upheld and the appeal dismissed.

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Issues: Whether a consignor who applies for transport permit, executes the requisite bond, and removes non-duty-paid excisable goods from one warehouse to another remains liable for duty when the goods are not rewarehoused and the rewarehousing certificate is not produced.

Analysis: The rules governing removal and transport of warehoused goods required the consignor to execute a bond ensuring due arrival and rewarehousing at the destination warehouse. The bond was not discharged merely on delivery to the consignee; discharge depended on production of the rewarehousing certificate within the prescribed time. Where the consignor himself applied for transport, executed the bond, and failed to produce the certificate, the statutory scheme under Rules 153, 156-A, and 156-B fastened liability on him for the goods not rewarehoused. The failure of the consignee to warehouse the goods did not relieve the consignor of this obligation.

Conclusion: The levy of excise duty on the plaintiff was valid and the consignor was rightly held liable.

Final Conclusion: The appeal was dismissed and the judgment below upholding the duty demand was sustained.

Ratio Decidendi: In the case of duty-paid transport under bond, the consignor remains liable until the statutory rewarehousing certificate is produced and the bond is duly discharged.

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