1995 (4) TMI 200

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....ing under Tariff Item 4(II). The Central Excise Officers noticed that loose cigarettes were utilized for the personal consumption in various departments without accounting for the quantity in the statutory account and without payment of Central Excise duty leviable on the cigarettes. As a sequal thereof a show Cause Notice dated 6-11-94 was issued to the appellants to show cause as to why the Central Excise Duty amounting to Rs 1,05,496.88 for the period from 11-4-84 to 30-10-84 be not recovered from them and penalty be not imposed. The appellants contested the show cause notice on different grounds. The Additional Collector after usual adjudication proceedings confirmed the demand and imposed the penalty of Rs. 2,000 under Rule 9(2) and Rs....

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.... merits in view of the said Order Nos. E/410 to 412/92-D, dated 24-9-92, supra. As regards the personal penalty he left the matter to the discretion of the Bench. 4.  We have considered the submissions. In the said case of the present appellants the identical issue was involved and the similar contention was raised which were negatived by the Tribunal. For ready reference the relevant portion of the said order Nos. E/410 to 412/92-D, dated 24.9.92 may be extracted as below : "................. It may also be relevant to bear in mind that loose sticks of cigarettes are also bought and smoked by consumers. The panel of employees had, in fact, lighted the cigarettes and smoked them as fully finished cigarettes. As regards the argume....

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.... wherein it was observed by the Supreme Court "............... the said tax can be levied at a convenient stage so long as the character of the impost, that is, it is a duty on manufacture or production is not lost. The method of collection does not affect the essence of the duty, but only relates to the machinery of collection for administrative convenience." The Supreme Court, further, observed therein. "Where the levy in our country has the status of a constitutional concept the point of collection is located where the statue declares it will be". In such a situation, arguments that in the light of Rule 93, the individual cigarette sticks are not excisable goods, cannot be accepted which conclusion will also follow from the decision of t....