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2019 (1) TMI 1097 - AT - Central ExciseValuation - Assessment of duty on ‘un-manufactured tobacco’ - valuation based on capacity based production - deployment of machinery - Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 - Held that:- No evidence has been produced for us to entertain a conclusion that trade parlance has a connotation which could be adopted for determination. The focus on portions of the show cause notice in the impugned orders, as well as the submission of Learned Special Counsel, would make it appear that a technical opinion from experts in engineering seem to be the only source of enlightenment. That, however, would not be in consonance with the principles that govern levy and collection of tax - also, though the number of pouches produced from machine did increase substantially, the circumstances specified in rule 6(1) for determination does not appear to apply. Providing for multiplication of capacity when ‘multiple track/multiple line’ machines are deployed, implies the acknowledgement of simultaneous emergence of the pouches. That does not appear to be so. The absence of parallel processing of pouches inclines us to discard the contention of Learned Special Counsel for Revenue that the machines installed by the assessee are ‘multiple track/multiple line’. Despite the elimination of lead time in collecting the ‘unmanufactured tobacco’ for each pouch, it is yet only one pouch that can be filled at any single point in time. That is a clear articulation of the intent. The lure of revenue maximization that may have motivated the initiation of proceedings cannot support the stated intent. In the absence of any evidence that the higher capacity was not merely a consequence of enhancing efficiency of existing machines, the grounds of appeal cannot sustain - appeal dismissed - decided against Revenue.
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