Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 1141 - AT - Central ExciseDemand of interest for leviability of duty for full period - availing of abatement by its own - manufacture of tobacco - Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 - operation discontinued and again stared after some time - whether demand of interest valid on the ground that the appellants availed abatement on their own? Had the appellants followed the proper procedure, the full amount as confirmed in the original order would have been paid and later, abatement would have been granted as per the actual dates of operation - Held that: - The reason given for confirming the interest is that the due date for payment of duty in terms of the above mentioned Rules is 5th of same month. The same is stipulated in Rule 9. The 3rd proviso to Rule 9 gives an exception that in case of increase in the number of operating machines in the factory during the month on account of addition or installation of packing machines, the differential duty amount, if any, shall be paid by the 5th day of the following month. During the period in which the due date falls, there is no manufacturing operation by the appellant. Hence, it follows that no duty could be determined and paid by them by 5th of the same month. The machines were unsealed and allowed for operation much later and such situation will be covered by the 3rd proviso of Rule 9 - decision in the case of Trimurti Fragrance Pvt. Ltd. Versus Commissioner of Central Excise, Delhi-II [2016 (2) TMI 718 - CESTAT NEW DELHI] relied upon. Demand of interest fails - appeal allowed - decided in favor of appellant.
|