(1) No dutiable goods shall be removed from any place where they are manufactured or any premises appurtenant thereto, which may be specified by the Excise Commissioner in this behalf, whether for consumption, export or manufacture of any other commodity in or outside such place, until the excise duty leviable thereon has been paid at such p[lace and in such manner as is prescribed in these rules or as the Excise Commissioner may require:
Provided that such goods may be deposited without payment of duty in a warehouse or may be exported out of India under bond as provided in rule 97.
Provided further that the Excise Commissioner may, if he thinks fit, instead of requiring payment of duty in respect of each separate consignment of goods removed 5 from the place or premises specified in this behalf; or from a warehouse keep with any person dealing in such goods an account-current of the duties payable thereon and such account shall be settled at intervals not exceeding three months, and the account-holder shall periodically deposit a sum therein sufficient in the opinion of the Excise Commissioner to cover the duty on the goods intended to be removed from the place of manufacture or storage.
(2) If any dutiable goods are, in contravention of sub-rule (1) deposited in, or removed from, any place specified therein the manufacturer thereof shall pay the duty leviable on such goods upon written demand made by the proper officer, whether such demand is delivered personally to him or is left at the manufactory or his dwelling-house, and he shall also be liable to a penalty to be determined by the Excise Commissioner which may extend to two thousand rupees, and such goods shall also be liable to confiscation.
Comments Taxing provision- Rule of interpretation- It is settled law that is distinction has to be made by Court while interpreting the provisions of a taxing statute between charging provisions which impose the charge to tax and machinery provisions which provide the machinery for the quantification of the tax and the levying and collection of the tax so imposed. While charging provisions are construed strictly, machinery sections are not generally subject to a rigorous construction. The Courts are expected to construe the machinery sections in such a manner that a charge to tax is not defeated.
While interpreting a taxing statute, equity has no place. The clear language of the statute is to be given effect notwithstanding hardship.
Scope of.- Rule 9(2) of the Rules provides for the imposition of penalty and confiscation of the goods if removed without payment of excise duty in contravention of sub-rule (1). In N.B. Sanjana V. Elphinstone Spinning and Weaving Mills Co., Ltd., it has been laid down by the Supreme Court that in the order to attract sub-rule (2) of rule 9 of the Central Excise Rules, which is the same as sub-rule (2) or rule 9 of the Rules, the goods should have been removed clandestinely and without assessment. There is no allegation in the instant case that the respondent had clandestinely removed the goods from its manufactory. On the contrary, it is not disputed that the goods were removed on the basis of applications made by the respondent in A.R. 2 forms on payment of duty assessed by the Excise Officer. There is, therefore, no question of clandestine removal of the good and, accordingly. rule 9(2) will have no application.
10. Alteration of duty;- The rate of duty applicable to goods cleared on payment of duty shall be the rate in force on the date on which duty is paid, or if the goods are cleared from a manufactory or warehouse, on the date of the actual removal of such goods from such manufactory or warehouse;
PROVIDED THAT if the goods have previously been removed from a warehouse under bond to be re-warehoused and the duty is paid on such goods without their being 6 re-warehoused, the rate applicable thereto shall be the rate in force on the date on which duty is paid, or if duty is paid through an account –current maintained with the Excise Commissioner under Rule 9 on the date on which an application Form A.R. 2 is delivered to the officer-in-charge of the warehouse from which the goods were removed.