2023 (9) TMI 640 - CESTAT AHMEDABAD

Calculation of duty - production of a new retail sale price was done from 28.12.2011 to 31.12.2011 - whether the duty for the entire month has to be paid or duty on pro-rata basis only for four days, when the production has taken place? - abatement claim - HELD THAT:- The contention of the department is that appellant was supposed to pay duty for the entire month of December 2011. Thereafter, they should have claimed abatement by filing a refund claim. This shows that department is in agreement that for the closer days of the production duty per se is not payable. Therefore, it is a Revenue neutral situation, even if the appellant pay the duty and undisputedly entitled for claim of abatement or pay the duty only for the production days, in the present case four days.

The identical issue has been considered by this Tribunal in M/S ZEST PACKERS PVT. LTD AND UNICORN PACKERS PVT. LTD VERSUS CCE AHMEDABAD-II [2015 (8) TMI 25 - CESTAT AHMEDABAD] even against the impugned order and the demand was set aside holding that It is already observed that the expression in Rule 10 are clear that the manufacturer shall calculate the duty by reducing amount on a proportionate basis in respect of non-production of goods.

From the above Tribunal’s order, it can be seen that the Tribunal dealing with the same issue even against the impugned order for the portion of demand confirmed, the Tribunal has set aside the demand and allowed the appeal of the respondent. Therefore, there is no substance in the revenue’s appeal.

Appeal of Revenue dismissed.