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2016 (1) TMI 831 - AT - Central ExciseCorrect amount of duty payable as per the compounding scheme - Re-determine the duty liability in terms of the deeming provision as per proviso to Rule 8 - Held that:- It is an admitted fact that the appellants did make ₹ 0.50/- pouches alongwith ₹ 1/- pouches during the impugned period. Though prima facie such situation will attract the proviso to Rule 8, when a combined reading is made of the provisions of Rule 5, Rule 9 and Rule 8, it is clear that the new RSP mentioned in the said proviso to Rule 8 should be taken to mean a new RSP which will be higher than the previous RSP of pouches manufactured and which will attract different category of serial number under Rule 5 with higher duty liability. The retrospective amendment of the impugned provisions by Finance Act, 2014 concluded that the intention of the Government was to levy duty at the rate applicable to highest RSP on a particular machine during a particular month when during that month, on that machine, pouches of different RSPs have been produced. Giving emphasis to the harmonious reading of the various provisions of the said Rules of 2008, manufacturing of Gutkha pouches of ₹ 0.50/- is not to be considered as a new RSP for the purpose of proviso to Rule 8. Thus the demand made in the present case is not sustainable. - Decided in favour of assessee.
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