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TMI Blog2015 (6) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... Determination and Collection of Duty) Rules 2008 (hereinafter referred to as the PMPM Rules) and chewing tobacco and manufactured Tobacco packing machines (Capacity Determination and Collection of Duty) Rules, 2010 (hereinafter referred to as CTUTPM Rules) -The dispute is in respect of the months of March 2011 and July 2013. 1.1 During March 2011, the appellants unit was closed from 1.03.2011 to 16.03.2011, for which they had claimed the abatement under Rule 10 of the PMPM Rules and the unit had functioned only from 17.03.2011 till the end of the month. In terms of PMPM Rules and CTUTPM Rules, the appellant were required to pay duty in respect of a month by 5th of that month and accordingly, the duty liability for the month of March 2011, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for 8 days i.e. from 24.07.2013 to 31.07.2013 in terms of 4th Proviso to Rule 9 of the PMPM Rules, or whether in respect of these 4 machines the duty liability for the month of July is to be paid for the entire month. The Department is of the view that in respect of the 4 new Pan Masala Packing Machines installed w.e.f. 24.07.2013 and which were used for making the pouches of MRP Rs. 4, the duty would be payable for the entire month. The duty demand of Rs. 1,51,35,483/- is on this basis. 1.3 The matter was adjudicated by the Commissioner vide order-in-original dated 29.04.2014 by which the duty demand of Rs. 1,83,61,288/- was confirmed against the appellant along with interest and beside this while penalty of Rs. 91,80,644/- was imposed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s held that for claiming the abatement for the period of closure, depositing duty for the whole month was not a pre condition and in such cases the duty would be required to be paid only for the number of days for which the factory was working, that as regards, the second point of dispute relating to July 2013, the appellant during 1st July to 23rd July had installed a total of 21 machines 13 machines for manufacture of Pan Masala pouches of MRP of Rs. 1 and 8 machines for manufacture of Chewing Tobacco Retail pouches of MRP of Rs. 1, that w.e.f from 24.07.2013, 4 new machines were installed for manufacture of the Pan Masala pouches of MRP of Rs. 4 and the necessary declaration in this regard were filed, that since, these new machines were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As regards, the dispute for the month of March 2011, in respect of which the duty demand confirmed is Rs. 32,25,805, there is no dispute that the unit was closed from 1st March 2011 to 16th March 2011 and had functioned only from 17.03.2011 to 31.03.2011. The Department does not dispute that the appellant would be eligible for abatement under Rule 10 of the PMPM Rules for the period of closure from 1st March 2011 to 16th March 2011. The only point of dispute is as to whether for claiming the abatement, the appellant should first pay the duty for the whole month by 5th March 2013 and should have thereafter claimed the abatement. We find that this issue stands decided in the appellants favour by the Tribunal's Final Order No. A-50223-50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, in terms of Rule 8, if the number of packing machines installed in a factory, during the month varies, the maximum number of machines on any particular date would be treated as "the number of operating machines" for the purpose of calculation of duty liability under Rule 7, according to which the duty payable by a pan masala/ gutkha unit for a particular month shall be calculated by application of the appropriated rate of duty specified in the notification no. 42/08-CE to the number of "operating packing machines" in the factory during the month. However, 4th proviso to Rule 9 states that in case a manufacturer either permanently discontinues manufacturing of goods of existing MRP or commences manufacturing of the goods of a new MRP ..... X X X X Extracts X X X X X X X X Extracts X X X X
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