TaxTMI 
TaxTMI 
2003 (3) TMI 128
X X X X Extracts X X X X
X X X X Extracts X X X X
....les are brought back to premises of factory from the mine site. 2.The facts are taken from W.P. No. 4528/1993. Petitioners submit that they are dealing in the field of industrial explosives and allied technology. They are manufacturing explosives for nationalised coal fields for the purpose of blast. They are also manufacturing a wide range of products including paints, rubber chemicals, speciality chemicals, catalysts, pharmaceuticals, agro chemicals, seeds, etc. 3.It is submitted by the petitioners that they have the unit at Singrauli, District Sidhi. The SMS plant has two components. Support plant and bulk mixing and delivery vehicles (commonly known as Pump trucks). Internationally in order to increase the quality and potency of i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntain various raw materials for manufacture of explosives; (ii) Hydraulic Motors and pumps and augurs so as to facilitate a proper mixing of the materials at a different percentage of composition. (iii) A Power Take of Unit (PTU), uniquely designed to drive energy from the engine of the vehicle itself to run above electrically. (iv) The Control Panels and meters providing the required levers to ascertain the propelled manufacturing of product at the site. 6.Manufacturing process of the petitioner unit is governed by a licence issued under the Indian Explosives Act, 1884 read with the Explosives Rules, 1983. 7.It i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....k leaves the support plant premises for the mine site. The event of taxation is being preponed to a stage which is anterior in point of time to manufacture. It is submitted that certain material which is not used has to be accounted and taxable event is the manufacture before which excise duty cannot be levied. 8.A return has been filed by the respondents in which it is contended that the prescribed procedure for clearance of such goods out of the manufacturing premises as envisaged under Central Excise Rules namely 9(1), 52A, 53, 173F, 173G and 226 has to be followed. The production of the goods has to be properly recorded in prescribed statutory records i.e. in R.G. 1 register and clearance of the same has to be effected under cover of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tory for supply at the mining site. After delivery of the explosive material with the help of pump truck in the bore holes at the mining areas, the petitioner claims to enter the production of the explosives in the R.G. 1 register and 'issue gate passes thereafter'. Some quantity of explosives which is not consumed in the bore holes in brought back to the factory without intimation to the Central Excise authorities and without following Central Excise Rules and procedure laid down in this regard. The clearance of the goods without recording its production and transportation without coverage of prescribed documents is not only against the 'interest of revenue' but a 'high security risk'. The intention of the petitioner is to avoid the paymen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uest for prescribing a suitable procedure has been made, the Board has issued the directions as mentioned in the circular. 11.Smt. Indira Nair, learned Sr. Counsel appearing on behalf of the respondents, has submitted that the mode of assessment adopted by the Department is proper, however, in case petitioner approaches the Central Board of Excise and Customs, it is for the petitioner to submit the representation as provided under Section 37B. 12.The provisions of Section 37B of the Central Excise Act, 1944, makes it clear that Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963), may, if it considers it necessary or expedient so to do for the purpose of uniformity in the classific....