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COMMISSIONER OF CENTRAL EXCISE, DELHI-I Versus SHAKTI FRAGRANCES PVT. LTD. UNIT-II

2015 (10) TMI 1040 - DELHI HIGH COURT

Demand of differential duty - Abatement claim - compounded levy scheme - Demand of interest - Held that:- Appellant had pressed into service Rule 10 of the PMPM Rules requires the duty calculated on a proportional basis to be abated in case the factory does not produce the notified goods during any continuous period of 15 days in a month. Rule 10 further requires the intimation to that effect to be given to the authorities at least three working days prior to the commencement of the period of cl .....

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every month cannot result in depriving the Assessee of the pro rata abatement of duty which he is in any way entitled to since admittedly in the present case there has been a closure of the factory from 14th to 31st August 2012 and an abatement order has also been passed on 28th August 2012. However, the Assessee would be liable to pay the interest for the period of late deposit of duty. - No substantial question of law arises therefrom. - Decided against Revenue. - CEAC 29/2015 - Dated:- 5-8-20 .....

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uty payable for the month of August 2012 in terms of the show cause notice ( SCN ) dated 23rd May 2013. However, the CESTAT has upheld the said order of the Commissioner to the extent it required the Assessee to pay the interest on the differential duty. 2. The Respondent Assessee is engaged in the manufacture of Gutka and is paying central excise duty under the compounded levy scheme as per the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 ( PMPM Rules .....

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a basis. 4. Stating that on the harmonious reading of Rules 7, 8 and 9 of PMPM Rules, the Assessee was required to pay upfront the central excise duty on all the machines put to operation during the month and that it had paid duty only for 13 days, the Department issued a SCN to the Assessee on 23rd May 2013 asking it to show cause why it should not be asked to pay the duty of ₹ 1,32,38,710 along with the interest as well as penalty under Rule 17 of the PMPM Rules. 5. By the order dated 13 .....

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placed on record by the Appellant) erroneously refers to the sealing of the packing machines of the Assessee in the month of July 2012 although admittedly the appeal pertains to the determination by the Commissioner of the SCN pertaining to closure of the packing machines in the month of August 2012. 8. The CESTAT in the impugned order notes in para 4 that there was no dispute about the Appellant s entitlement to abatement and that Revenue s only objection was as regards the non-compliance by t .....

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it being denied to the Assessee. The only consequence would be the liability to pay interest. 9. The aforementioned decision in Shree Flavours Pvt. Ltd. v. CCE Delhi-IV (supra) was challenged by the Revenue before the High Court of Punjab & Haryana by way of CEA No. 4 of 2015 (O&M) in the High Court of Punjab & Haryana. By an order dated 7th May 2015, the Division Bench of the Punjab & Haryana High Court dismissed the said appeal following its earlier decision dated 4th October 2 .....

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