1996 (12) TMI 73

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....dia the petitioner has prayed for quashment of show cause notice dated 6-4-1996 Annexure P-10 and also memo directing seizure Annexure P-11, dated 2-5-1996 and also legality and propriety of the Circular No. 194/28/96-CX., dated 29-3-1996 Annexure P-12 issued by the Central Board of Excise and Customs. 2.The petitioner is a public limited company which manufactures the explosives. The manufactu....

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....ras Rubber Factory Limited [1995 (77) E.L.T. 433] that the interest is receivable, therefore, the excise duty is not payable on the goods so sold. Circular issued by the Central Board of Excise and Customs Annexure P-12 runs counter to the decisions of the Supreme Court and the department is bound by the instructions in view of Section 37B of the Central Excises and Salt Act, 1944. It is contended....

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....t a glance of Annexure P-1 shows that in column of Terms of Payment is stipulated within 21 days on receipt of materials. Therefore, the interest which was receivable by the manufacturer would be payable after the expiry of 21 days and not prior to that. The department at several times asked the petitioner to place the material to demonstrate that on the goods so sold the sale price was received a....

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....ty will pass order keeping in consideration the effect of the same in the light of the decision of the Supreme Court rendered in Government of India v. Madras Rubber Factory Limited (supra). Therefore, at this stage it is not necessary for this Court to express any opinion on Annexure P-12 whether it runs counter to the decision of the Supreme Court. 5.In the circumstances, this petition is dis....