1964 (10) TMI 4

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uring package tea. According to the rules he has to bring all the loose tea that he purchases and which he desires to convert into package tea into the licensed premises. The packaging which is a process of manufacture under the Act, involves excise duty, and on such package tea he has to pay excise duty on its removal from the licensed premises. In case he does not convert the loose tea into pack....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ise duty i. e. when that loose tea was removed not as package tea but as loose tea, the failure of the petitioner to bring all his loose tea purchased into the premises was taken by the Assistant Collector of Central Excise to indicate that the petitioner. "Should have therefore manufactured this tea into package tea and removed the same without payment of duty due thereon." Accordingly a sh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....loose tea, must really relate to sales of package tea. He accordingly imposed the appropriate duty and penalty. 3.Mr. V. Ramaswami, learned Counsel for the Department, does not deny that there is no evidence at all that the petitioner dealt with this quantity of tea as package tea. But he was at pains to make out that the rules require that a person who holds a L-4 licence for package tea must ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rules if evasion to the proper payment of duty is to be guarded against. 4.It may well be that the rules are designed to prevent evasion of duty. But what I am concerned with is whether any such restriction upon the business of an individual who happens to take out a licence for manufacturing tea, is made out by the rules. There is no provision which compels the licensee not to deal in loose te....