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2017 (2) TMI 666 - HC - Central ExciseWhether duty payable under proviso 7 to Rule 9 of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 is limited to remainder of the period for which the declaration is not filed or in-contravention to the declaration, the manufacturing activities continued? Held that: - the 7th proviso restricts the liability to pay the duty for the remaining months meaning thereby the period during which the declaration is either not filed or the declaration is contravened. The availability of the packing machines may be assessed either on the basis of the declaration made in the month when the duty was last paid or the available machines in the premises by verification - Therefore, so far as the availability of the packing machines are concerned, the word whichever is higher would apply but the fact remains that the liability to pay duty is for the remaining months meaning thereby the months during which the duties are not paid as per the declaration filed which can be considered as contravention to the declaration or the duties not paid on account of no declaration having been filed at all. It is not possible to accept the contention of the learned Counsel for the Revenue that the 7th proviso would operate independently for the whole year by excluding the word ‘for the remaining of the financial year’ nor it is possible to accept the contention that the 7th proviso is not relatable to 6th proviso for the purpose of liability to pay the duty irrespective of the fact that no declaration is filed or that the declaration is contravened while undertaking the manufacturing activity. Appeal allowed - decided in favor of assessee.
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