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1 - 3 of 3 (0.65 seconds)Section 4 in The Central Excise Act, 1944 [Entire Act]
British India Corporation Ltd vs Collector Of Central Excise on 20 August, 1962
4. The learned counsel for the petitioner invited attention to the pronouncement of their Lordships of the Supreme Court in Orient Paper Mills Lid. v. Union of India-A.I.R. 1967 S.C. 1564. In that case their Lordships laid down that excise duty would be payable at the time of removal and two kinds of casts would have to be considered. Where the relevant time is the removal, the duty would be payable as on the date of removal. But, if the payment of duty be made payable before the removal, then the critical time would be the time of payment of the duty. We may observe that Section 4A and Rules 9, 9A, 49 and 224(2) of the Central Excise Rules, 1944, would be relevant as regards the calculation of the rate at which excise duty would be payable. Their Lordships considered the said Rules in connection with Section 4 of the Act. There can be no doubt that as laid down by their Lordships, the rate would be as existing at the time of removal and if advance excise doty were to be paid then it would be at the time of payment of duty and the time of removal would be wholly irrelevant. This case is cleaily distinguishable inasmuch as Section 4 of the Act along with the relevant rules was for consideration before their Lordships. The question will be different where the charging Section, namely, Section 3 of the Act is to be considered to ascertain as to at what point of time of excise duty is payable when the impost is made for the first time. In our opinion, different considerations will prevail and excise duty being a tax on manufacture or production, the material time under Section 3 will be the date of manufacture or production. Moreover, we may observe that the notification imposing the excise duty with effect from 17-3-1972 had not retrospective operation and if it was prospective, then excise duty would be payable on goods produced or manufactured on 17-3-1972 and thereafter.
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