Excise duty on manufactured goods survives in-factory testing and destruction absent exemption or permissible remission.

Excise duty attaches on manufacture, and Rules 9 and 49 only regulate collection, not the underlying charge. Goods drawn for testing inside the factory remain dutiable unless a specific exemption notification applies or remission is under the rules. Remission under Rule 49 is limited to loss or destruction by natural causes, unavoidable accident, or other qualifying non-recovery conditions, and testing that renders goods unusable does not by itself remove duty liability. Concrete poles drawn and broken during in-factory testing therefore remained liable to duty, with no admissible remission.

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Issues: Whether excise duty was payable on concrete poles drawn and broken during testing within the factory, in the absence of any exemption notification or permissible remission under the Central Excise Rules.

Analysis: Section 3 of the Central Excises & Salt Act, 1944 creates the levy on manufacture, while the relevant rules govern the manner and timing of collection. Rule 9 and Rule 49 do not extinguish the charge; they only postpone collection until removal from the factory or approved storage. Remission under Rule 49 is confined to cases where goods are lost or destroyed by natural causes or unavoidable accident, or where the conditions for non-recovery are otherwise satisfied. Goods drawn for test inside the factory do not fall outside the charging provision merely because they are tested or rendered unusable thereafter, and no exemption notification covered the goods.

Conclusion: The poles drawn for test remained liable to duty, and no remission was admissible; the finding was against the assessee and in favour of the Revenue.

Ratio Decidendi: Excise duty attaches on manufacture, and in the absence of a specific exemption or a rule-based ground for remission, testing and destruction of goods within the factory does not wipe out the duty liability.

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