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2015 (11) TMI 702 - CESTAT NEW DELHI

2015 (11) TMI 702 - CESTAT NEW DELHI - TMI - Duty demand - manufacturer of pan masala / gutkha and paying duty under Pan Masala Packing Machines (Capacity Determination and collection of duty) Rules 2008 - Held that:- A similar case came up before this tribunal in the case of Godfrey Philips India Ltd. [2015 (8) TMI 35 - CESTAT NEW DELHI] wherein the factory of the assesse was not in operation during the period 01.06.2010 and 21.06.2012 and it was operative only for three days i.e. on 27th 28th .....

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the respondent has paid duty for the period 17.05.2011 to 31.05.2011. Therefore, I hold that respondent have correctly paid the duty on pro rata basis and do not find any infirmity with the impugned order. Same is upheld. - Decided against Revenue. - Appeal No. E/53205/2014-EX(SM) - FINAL ORDER NO. 51669/2015-EX(SM) - Dated:- 13-5-2015 - Shri Ashok Jindal, Member (Judicial) For the Petitioner : Shri D. Singh, DR For the Respondent : Shri Manish Pushkarna, Advocates ORDER Per Ashok Jindal: The Re .....

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uction started de-sealing of the machine on the said date. The respondent paid the duty for the period 17.05.2011 till 31.05.2011 on pro rata basis. Proceedings were initiated against the respondent on the premise that as per rule 10 of the Pan Masala Packing Machines (Capacity Determination and collection of duty) Rules 2008 the respondent is entitled for abetment of duty for the period of closure of the machine but the Adjudicating Authority confirmed the demand. But on appeal ld. Commissioner .....

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per the rules the assessee is required to pay duty for whole of the month in advance by 5th day of the month during the month machine is in operation. In this case respondent has not paid duty for whole of the month by 05.05.2011, therefore, they are not entitled to claim abetment on pro rata basis and required to pay duty for 17.05.2011 to 31.05.2011. In these circumstances, the ld. Commissioner (A) has misinterpreted the rule. Therefore, impugned order is required to be set aside. He further .....

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as operative only for three days i.e. on 27th 28th and 29th June 2012. But the assesse paid the duty for four days and the claim of the assessee was of abetment of excess duty paid for 30.06.2012. In that case this tribunal observed in para 7, 8 & 9 as under: 7. In this case the short issue emerges whether appellant is required to pay duty for whole of the period or required to pay duty on pro rata basis after availing the abatement for closure period and consequently is entitled to claim th .....

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d only interest can be asked for the delayed payment. I have further seen that in the case of Shree Flavours Pvt. Ltd. wherein the facts of the case are as under: The Production started w.e.f. 08.09.2010 and closed on 17.09.2010. The appellant were required to discharge their duty liability within a period of five days from the date of production. But the appellant intimated to the department that they are going to close their factory from 17.09.2010 and they discharged their duty liability from .....

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th by 5th day of that particular month. If subsequently the unit is closed, they are given liberty to file abatement and seek refund of duty. However, in a scenario where a manufacturing unit is aware of the closure of its unit, before the duty is deposited by him for the entire month, he may seek abatement at that particular point of time, make deposit of duty for working days only. The non-following of the said procedure may result in confirmation of interest against the assessee, but will not .....

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