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2018 (9) TMI 1426 - CESTAT ALLAHABADClandestine manufacture and removal - manufacture of Pan Masala and Gutkha - Rate of duty for packing machine per month for pan masala containing tobacco having RSP per pouch up to ₹ 1.00 was ₹ 12.50 lakhs. It was noticed by revenue that during the period from January, 2010 to October, 2010 manufacturer-appellant manufactured Gutkha of RSP ₹ 1.00 and RSP ₹ 0.50 on the same machine - Rule 8 of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008. Held that:- The basis for arising of the demand was treating RSP ₹ 0.50 and ₹ 1.00 as two separate slabs whereas the ruling by Hon'ble Allahabad High Court in the case of COMMISSIONER OF CENTRAL EXCISE KANPUR VERSUS M/S. TRIMURTY FRAGRANCES (P) LTD. [2015 (11) TMI 320 - ALLAHABAD HIGH COURT], clarified the law stating that if Gutkha with different MRPs are manufactured on the same machine when such MRPs fall within the same slab then it cannot be treated as two separate machines for fastening duty liability on the manufacturer. Demand not sustainable - appeal allowed - decided in favor of appellant.
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