1996 (6) TMI 153

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....978. These were received in their premises on 26-2-1978. The Excise officers certified on 21-1-1980 that they were installed in terms of the subject Notification. The bond filed under the Notification was discharged and the security amount of Rs. 8,000/- was returned to them. Subsequently, on 27-9-1982, a show cause notice was issued to the effect that the subject air conditioners were installed in the Customs bonded warehouse where chemicals were stored and thus the conditions of the Notification were violated. 2. The Assistant Collector referring to the definition of "factory" referred to in the Notification held that the air conditioners should have been used only in the area where manufacturing activities were undertaken and not....

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....or issue of a licence, Shri Usman conceded that he had no knowledge of this. 6. We have carefully considered the submissions made by the learned DR and have perused the said notification and Chapter X of the Central Excise Rules, 1944. 7. Chapter X prescribes the provisions relating to remission of duty on goods used first for special industrial purposes. On perusal of the entire Chapter, it becomes clear that the provisions related to essentially raw materials which are required as inputs in the production of other goods. The application for permission to avail of this facility includes details such as estimated initial quantity of excisable goods required and manner and purposes of their utilisation. Rules further specify ....

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....where the applicant manufacturer has not accounted for the goods received by him under the provisions of Rule 192. The recovery can be made on demand or by confiscation of goods or by forfeiture of the security. We observe that the said notification vide condition (ii) contains provision for calculation of such duty in the case of non-fulfilment of the conditions of the Notification. If Rule 196 was meant to apply, then there would have been no need for specific inclusion of condition No. (ii) in the Notification. 10. In the present case, a separate bond was filed, security was paid, the installation of the air conditioners in the correct manner was initially certified and then nearly after two and a half years, the show cause notic....