9911796707
TMI Blog2014 (12) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... application No. E/51527 of 2014 is for restraining the department from initiating the recovery proceedings. Since the appeal and stay application have already been taken up for hearing, these misc. applications are dismissed as infructuous. 3. The appellant are engaged in the manufacture of gutka i.e. pan masala containing tobacco, chargeable to central excise duty. The period of dispute in this case is from August, 2011 to July, 2012. During this period, the appellant were discharging duty liability on the pan masala being manufactured by them in terms of the provisions of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 framed under Section 3A of the Central Excise Act, 1944, read with Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty amounting to Rs. 16,21,58,000/- by treating the two carton shrink wrapping machines as pan masala packing machines. This duty demand was for the period from August, 2011 to July, 2011 and the show cause notice, besides this duty, also demanded interest on the same under Section 11AB and sought imposition of penalty on them under Section 11AC. The show cause notice was adjudicated by the Commissioner vide order-in-original dated 29-8-2013 by which the above-mentioned duty demand was confirmed against the appellant along with interest under Section 11AA and besides this, penalty of equal amount was imposed under Rule 17 of the Pan Masala Packing Machines Rules read with Section 11AC of the Central Excise Act, 1944. The Commissioner in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, is not sustainable. 7. Shri Promod Kumar, ld. Joint CDR and Shri Amresh Jain, DR defended the impugned order by reiterating the findings of the Commissioner. 8. We have considered the submissions from both the sides and perused the records. 9. The appellant have installed certain number of pouch packing machines in their factory and there is no dispute that they are discharging duty liability on the pan masala pouches being manufactured by them in terms of the Pan Masala Packing Machines (Capacity Determination and Collection of Duty Rules), 2008, read with Notification No. 42/2008-C.E., which prescribes the rate of duty per packing machine per month. The pan masala pouches are packed in cartons and these cartons hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... containing pan masala pouches. Moreover, Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008, framed by the Central Government under Section 3A of the Central Excise Act, 1944 are the rules meant for collection of duty on pan masala manufactured by a manufacturer on presumptive basis by prescribing a per machine per month rate. But for attracting levy, there must be manufacturer of pan masala. Under Section 2(f)(iii), the manufacture includes any process which in relation to the goods specified in Third Schedule involves packing or re-packing of the goods in a unit container or labelling or relebelling of containers including the declaration or alteration of retail sale price on it or adoption of any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
