TaxTMI 
TaxTMI 
2010 (5) TMI 689
X X X X Extracts X X X X
X X X X Extracts X X X X
..../51/07 dated 7.12.2006 to declare that of the following question is a substantial question of law and to entertain the present appeal accordingly:- "Whether excise duty is liviable on "Control Samples" drawn and retained by the 'Party', considering it to be deemed removal under Rule 4, 10, 11 & 6 of the Central Excise Rules, 2002". 2. In order to adjudicate the present appeal, it is necessary to give the factual background of the present case. M/s Ozone Ayurvedic, 34, HPSIDC Indl. Area, Baddi (HP) (hereinafter referred to as "the 'Party') are engaged in the manufacture of Ayurvedic medicines & beauty or make-up preparation falling under Chapter heading 3003 & 3004 respectively of the First Schedule to the Central Excise Tariff Act, 1985, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arty' relying upon the larger Bench decision of Tribunal in the case of CCE, Chandigarh Vs. Dabur India lt.,[2005 (182) ELT 185 (Tr-LB)]. In a similar case of M/s Dabur India Ltd., the 'CESTAT' vide final order No. 1036-38/05-EX dated 16.12.2005 had decided the case in favour of the 'Party' relying upon the aforesaid decision of the Tribunal [2005 (182) ELT 185 (Tr-LB)] in CCE, Chandigah Vs. Dabur India Ltd. Being aggrieved the department has filed before this Hon'ble Court an appeal e.g. CEA 7 of 2006. 3. Rule 4 of Central Excise Rules 2001/2002 provided that no excisable goods shall be removed from any place where they are manufactured, until the excise duty leviable thereon has been paid. Explanation-II appended to Rule 4 of Central E....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rson has authorized the job worker to pay the duty leviable on such goods under sub-rule (3), such duty shall be paid by the job worker on the date of removal of such goods from his registered premises. (2) Notwithstanding anything contained in sub-rule (1), where molasses are produced in a Khandsari sugar factory, the person who procures such molasses, whether directly from such factory or otherwise, for use in the manufacture of any commodity, whether or not excisable, shall pay the duty leviable on such molasses, in the same manner as if such molasses have been produced by the procurer. (3) Notwithstanding anything contained in sub-rule (1) every person who gets the goods, falling under Chapter 61 or 62of the First Schedule to the Tari....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ces having regard to the nature of the goods and shortage of storage space at the premises of the manufacturer where the goods are made, permit a manufacturer to store his goods in any other place outside such premises, without payment of duty subject to such conditions as he may specify. Rule 6. Assessment of duty.- The assessee shall himself assess the duty payable on any excisable goods: Provided that in case of cigarettes, the Superintendent or Inspector of Central Excise shall assess the duty payable before removal by the assessee. Rule 10. Daily stock account. - (1) Every assessee shall maintain proper records, on a daily basis, in a legible manner indicating the particulars regarding description of the goods produced or manufactur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tral excise, or the Deputy Commissioner of Central Excise, as the case may be, in the special facts and circumstances of each case. (5) The owner or working partner or the Managing Director or the Company Secretary or any person duly authorized for this purpose shall authenticate each foil of the invoice book, before being brought into use. (6) Before making use of the invoice book, the serial numbers of the same shall be intimated to the Superintendent of Central Excise having jurisdiction. (7) The provisions of this rule shall apply mutatis mutandis to goods supplied by a first stage dealer or a second stage dealer. Explanation.- For the purposes of this rule, "first stage dealer" and "second stage dealer" shall have the meanings assi....