TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 310
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....ent, dismissed the appeal preferred by the Assessee, based on the judgement of the Division Bench of the Patna High Court in the matter of : Harinagar Sugar Mills Ltd. V. Union of India, 2001 (138) ELT 3 (Pat.). 2.1. To be noted, the judgement of the Patna High Court in Harinagar Sugar Mills Limited, was carried in appeal to the Supreme Court, whereupon, the Special Leave Petition (SLP) was dismissed in limine. 3. The only issue, which arises for consideration in this appeal, is : whether the Assessee would be liable to pay duty on molasses, which is stored in earthen pits, i.e., Katcha pits, located within the factory premises ? 3.1. According to the Assessee, the time for payment of duty would arise only upon removal of molasses from t....
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....ha pits, was declined by the excise authorities. 5.3. Consequent thereto, a Show Cause Notice dated 06.09.1999, was issued, whereupon, the Assessee was called upon to pay duty in the sum of Rs. 24,96,965/-. 5.4. To be noted, the duty was demanded for the period pertaining to August 1999. 5.5. The Assessee responded to the Show Cause Notice vide reply dated 28.09.1999. The Adjudicating Authority, after taking into account the stand taken by the Assessee, in its reply, proceeded to drop the demand raised in the aforementioned Show Cause Notice. 5.6. One of the reasons for dropping the demand was that a similar proceeding had been initiated against the Assessee vide another Show Cause Notice dated 12.08.1998. The proceedings initiated vis-....
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....ize the legal position, which is that, the excise duty would be payable on molasses in the given circumstances, only upon its removal from the factory premises. Learned counsel submits that since the earthen pits, i.e., katcha pits, were within the factory premises, no duty could have been demanded qua the Assessee. For this purpose, learned counsel also relied upon the proceedings, which were initiated via the earlier Show Cause Notice dated 12.08.1998, which, as noticed above, were dropped. 7.1. In support of his submissions, learned counsel relied upon the following judgements of the Tribunal : (i).U.P. State Sugar Corporation Limited V. CCE, Allahabad, 1989 (29) RLT 164 (CEGAT) ; (ii).CCE, Patna V. Bihar State Sugar Corporation, 1989....
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....e judgement of the Tribunal. Furthermore, learned counsel also seeks to place reliance on the judgement of the Patna High Court in Harinagar Sugar Mills Limited V. Union of India, 2001 (138) ELT 3 (Pat.). 8.1. Emphasis is also laid by Mr.A.P.Srinivas, on the fact that the SLP preferred against the said judgement was dismissed. 8.2. Furthermore, the submission of Mr.A.P.Srinivas, is that, since, molasses was stored in earthen pits, i.e., katcha pits, without approval of the concerned authorities, it amounted to removal within the meaning of Rule 9, and therefore, when, read with the provisions of Rule 49, duty, as demanded, would have to be paid by the Assessee. 9. We heard the parties and perused the record. 10. According to us, the rel....
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.... goods whether for consumption, or, export, or, even for manufacture of any other commodity either in or outside the place where they are produced, cured or manufactured or any other premises appurtenant thereto, which may be specified by the Commissioner, in this behalf, without payment of excise duty. In other words, excisable duty is payable, only on removal of goods for a specified purpose from a place referred to in Rule 9(1). 10.2. In so far as Rule 49(1) is concerned, the assessee is not required to pay duty on excisable goods made in a factory till such time they are about to be issued out of the place or premises specified under Rule 9 or are about to be removed from a store-room or other place of storage approved by the Commissio....
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....arly, according to us, the stage and/or time for payment of duty had not arisen, as contemplated under Rule 9 read with Rule 49 of the 1944 Rules. 12. In so far as Mr.A.P.Srinivas's submission, that the issue raised in the instant case is covered by the judgement rendered by the Patna High Court in the matter of Harinagar Sugar Mills Ltd. V. Union of India, 2001 (138) ELT 3 (Pat.) is concerned, according to us, is loses sight of the correct ratio of the judgement. 12.1. A close perusal of the facts obtaining in the said judgement would show that the molasses in that case, were stored in an approved earthen pits, i.e., katcha pits; that approval was withdrawn, which led to the demand of excise duty by the concerned authorities. There i....