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2017 (8) TMI 1266 - CESTAT NEW DELHICompounded Levy Scheme - Pan Masala packed manually in tins - CBEC (Tax Research Unit) vide circular dated 04.08.2008 - Held that: - the circular clarifies that the Compounded Levy Scheme notified under Section 3A will not be applicable to Pan Masala packed in tin containers manually. Such scheme is specifically notified only for pan Masala packed in FFS machines - the demand of duty on Pan Masala packed in tin containers cannot be sustained and is set aside. Demand of duty made on the basis of pouch packing machines installed in the factory on 01.07.2008 - Held that: - From a perusal of Section 3A ibid, along with the relevant N/N. 29 and 30/2008 CE NT dated 01.07.2008, it is evident that the Compounded Levy Scheme notified mandatorily required the manufacturer to pay duty as per the number of FFS machines installed in the factory. The manufacturer has the option of getting his machines sealed to avoid demand of duty under the above scheme - it is not disputed that the machines were installed in the factory and not sealed on 01.07.2008 i.e. available for manufacture of Pan Masala on 01.07.2008. Consequently, in terms of the scheme notified under Section 3A, the appellant is liable to pay duty for one day on 01.07.2008 for the machines which were installed in the factory and are sealed. Appeal allowed - decided partly in favor of appellant.
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