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2017 (12) TMI 551 - AT - Central ExciseClandestine manufacture and removal - pan masala - It was observed that the appellant was indulged in the surreptitious activity of packing and removing of such notified goods manufactured with the aid of undeclared pouch packing machine - Held that: - the machine was used only for two days in manufacturing the notified goods. As per the 8th proviso appended to Rule 9 of the said rules, the duty payable shall be calculated on pro-rata basis of the total number of days remaining in that month, starting from the date of such commencement of production. However, the adjudicating authority by placing reliance on Rule 7 of the rules, has held that the appellant is required to pay the duty for the entire month of February, 2012. The fact is not under dispute that the appellant had contravened the provisions of Chewing Tobacco and Unmanufactured Tobacco Packing Machine (Capacity Determination and Collection of Duty) Rules, 2010 - On perusal of Rule 18 ibid, it reveals that the said rule does not provide for confiscation of raw material, packing material of notified/nonnotified goods and un-declared pouch packing machine. Thus, it is evident that under the said rules, the finished goods are only liable for confiscation. The matter should go back to the original authority for quantification of the redemption fine, payable by the appellant on the finished goods - appeal allowed by way of remand.
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