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2019 (7) TMI 904 - AT - Central ExciseManufacture of Gutkha - duty discharged under the provisions of Pan Masala Packing Machines (Capacity Determination and collection of duty) Rules, 2008 as amended - Mis-declaration of the value of production - case of assessee is that In the present case the highest MRP Goods i.e. ₹ 3 MRP were not manufactured for whole month but only for a day - Section 3A and PMPM Rules, 2008 - imposition of penalties - HELD THAT:- The Unit had filed declaration on 01.04.2011 in terms of Rule 6 of PMPM Rules wherein they declared the details of packing machines to be used for packing of Gutkha along with specific MRP of the pouches. However the unit was found to be engaged in packing pouches of higher MRP in contravention of declaration filed by them under Rule 6 of PMPM Rules, 2008 - Clearly the Appellant unit contravened the provisions of Rule 6 (6), 7 and 9 of the PMPM Rules, 2008 and since the notified goods were manufactured in contravention of their declaration, therefore as per the provisions of Rule 9 of the PMPM Rules, 2008 the rate of duty applicable to goods of Highest RSP, ₹ 3 in this case will be applicable in respect of all packing machines operated by the Appellant and they are liable to pay duty as per said RSP on all machines. Personal penalty imposed upon the Appellant Shri Dilipkumar Amrutlal Jani, director of the Appellant Unit and Shri Jagdishprasad Mohanlal Joshi and Shri Sachin Joshi - HELD THAT:- The impugned goods were manufactured in violation of Rule 6 of PMPM Rules, 2008 and since Shri Dilipkumar Amrutlal Jani being involved in violation of subject rules being director of the unit is liable for penalty. However considering the amount of duty and imposition of penalty on the company, we are of the view that personal penalty imposed upon Shri Jani is on higher side, which requires reduction - penalty imposed upon Shri Dilipkumar Amritlal Jani is reduced from ₹ 5,00,00,000/- to ₹ 4,00,00,000/-. Penalty on Shri Jagdish M Joshi and Shri Sachin Joshi - Applicability of section 270 - HELD THAT:- No involvement of above persons is on record. We do not find any act committed by both Appellants to evade payment of duty or to violate the Pan masala packaging Rules. Shri Dilipkumar Amrutlal Jani has not named any of these persons to be involved in any act of violation of law nor any of the persons whose statements has been relied upon i.e. production Manager or Supervisors has named the Appellants to be involved in any act of violation - In absence of any evidence of involvement of both of these persons in any act of violation of Pan masala Packing Machinery Rules, 2008 or central excise law, we do not find any reason to impose penalty upon them. We therefore set aside the impugned order only to the extent, it imposes penalty upon Shri J.M. Joshi and Shri Sachin Joshi, resultantly the penalty on both of these persons is set aside. Appeal allowed in part.
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