AIR 1988 SUPREME COURT 191 ::1988 SCC (Tax) 26 ::1987 (13) ECR 1280 ::(1987) 13 ECR 280 ::(1987) 32 ELT 234 ::(1987) 14 ECC 239 ::1988 24 STL 19 ::1987 (12) Reports 491 ::(1988) 68 STC 421 ::1988 68 STC 421 ::1987 SCC (Supp) 350 ::1988 UPTC 305 ::(1987) 4 JT 421 (SC) ::1987 5 JT 421

Supreme Court Of India

(From : ILR (1983) 1 Delhi 518)

Hon'ble Judge(s): R. S. Pathak, Ranganath Misra, M. M. Dutt , JJJ

(A) Central Excise and Salt Act (1 of 1944) , S.3, S.2(e)— Central Excise Rules (1944) , R.9— Time and manner of payment of duty - Removal of excisable goods - Removal within the place of production of excisable goods for captive or home consumption is also contemplated by R.9. Rule 9 before its amendment in 1982 prohibited the removal of excisable goods whether for consumption, export or manufacture of any other commodity in or outside such place, until the excise duty leviable thereon has been paid. It is manifestly clear from R.9 as it stood then that it contemplates not only removal from the place where the excisable goods are produced, cured or manufactured or any premises appurtenant thereto, but also removal within such place or premises for captive consumption or 'home consumption', as it is called. Thus if a commodity which is manufactured in such place or premises and is used for the manufacture of another commodity, then it will be a case of removal for the purpose of payment of excise duty. This view follows from the expression "whether for consumption, export or manufacture of any other commodity in or outside such place". Thus consumption of excisable goods may be within such place or outside such place. If a commodity manufactured within the factory in one plant is transferred to another plant for the purpose of production of another commodity....