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2018 (12) TMI 160 - AT - Central ExciseClandestine manufacture and removal - Gutka - applicability of Rule 18 of Pan Masala Packing Machines (Capacity Determination and Collection of duty) Rules, 2008 - entire demand is based on the invocation of explanation to Rule 18A with Rule 17 (2) of said Rule, 2008 - two undeclared FFS machines found installed in some part of the same premises. Held that:- The premises which were rented out to the manufacturer-appellant were not the premises where two pouch packing machines were found by the officers - the two pouch packing machines were found in the premises rented out to M/s Gaurav Enterprises and M/s Anandeshwer Enterprises. Further, revenue could not establish any evidence to establish manufacture of Gutkha by the appellant and could not establish clearance of the same and therefore, invoking Sub-rule 2 of Rule 17 of said Rules, 2008 for fastening liability on the manufacturer-appellant from 1st July, 2008 is not tenable in law. It is provided in explanation to Rule 18 of the said Rule, 2008 that the goods shall be held to be manufactured with the aid of packing machines if they are cleared from the factory where the pouch packing machine are found installed - the said provisions are not invokable in the present case, because revenue could not establish beyond doubt that the premises which was under the control of the manufacturer-appellant through rent agreement were the premises in which two pouch packing machines were found. Demand not sustainable - appeal allowed - decided in favor of appellant.
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