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2017 (7) TMI 1119 - AT - Central ExciseAbatement of duty - Rule 10 of the PMPM Rules, 2008 - the appellant was required to pay duty as if he was manufacturing the notified goods from three separate machines, whereas admittedly all the three RSP-different products were being manufactured from the same one packing machine. Held that: - in view of the amendment by way of substitution of the first proviso to Rule 8 of PMPM Rules, 2008 which is retrospective in nature, we hold that the appellant is required to pay duty based on the notified products having the highest RSP/MSP - In view of the admitted fact that the appellant have paid the duty on the basis of MRP/RSP per pouch which is highest of the notified goods, we hold that the demand on this score ₹ 1,25,29,839/- under Section 11A(2) of the Central Excise Act, 1944 is not tenable and accordingly, the same is set aside along with the penalty imposed of ₹ 1,25,000/- under Rule 17 of the Pan Masala Packing Machine (Capacity Determination & Collection of duty) Rules, 2008. Allowance of abatement - Held that: - only allegation of the Revenue for rejection of abatement is that the amount of admissible abatement have not been quantified by the Department and secondly the appellant had cleared Pan Samagri (a non-notified goods) during the period of closure and as such was not entitled for the abetment - Held that: - the assessee is entitled to abatement during the period of closure, if they have removed or cleared any non-notified goods during the period of closure - appellant is entitled to abatement for the period under dispute. Appeal allowed - decided in favor of appellant.
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