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2018 (12) TMI 1359 - AT - Central ExciseValuation - manufacture of Gutkha pouches - Department was of the view that since, on the same machine, in addition to the Panmasala pouches of RSP of ₹ 3, the pouches of the RSP of ₹ 2 were also manufactured, first proviso to Rule 8 of the PMPM Rules would become applicable - Held that:- The undisputed facts are that during each of the four months - August 2009, September, 2009, October, 2009 and November, 2009, the appellant in Form -I declaration for that month filed by them in terms of Rule 6 of the PMPM Rules, had clearly declared that they would be using one packing machine for manufacture of the retail pouches of panmasala and that machine would be used for manufacture of the retail pouches of ₹ 2 as well as ₹ 3 RSP. The first proviso to Rule 8 becomes applicable when on an existing packing machine, the manufacturer commences manufacture of the “goods of a new RSP” during that month and in such a situation, this has to be treated as an addition in the number of operating packing machines for the month or in other words, that machine would have to be treated as two machines. The dispute is as to what is a "new retail sale price". The new retail sale price would mean the retail sale price which had not been declared in respect of that machine in the Form-I declaration. Identical issue decided in the case of M/S. KAY PAN SUNGANDH (P) LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, RAIPUR [2017 (4) TMI 982 - CESTAT NEW DELHI], where it was held that Rule provides that if the manufacturer commences manufacturing of the goods of a new retail sale price during the month on an existing machine, it shall be deemed to be an addition in the number of operating packing machine for the month. Appeal allowed - decided in favor of appellant.
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