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Satya Prakash & Co. Versus Commissioner of C. Ex., Lucknow

2015 (3) TMI 1144 - CESTAT NEW DELHI

Entitlement for abatement - stoppage of production - Held that:- When a manufacturer of Gutka/Pan Masala is manufacturing Gutka/Pan Masala pouches of different RSPs and for a certain period of 15 days or more, he stops the production of only one particular RSP, he will not be entitled for abatement, if continues the production or clearances of Pan Masala/Gutka of other RSPs by operating those machines. As find that from the language of Rule 10 it is clear that for claiming abatement under Rule 1 .....

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(1), it is clear that these rules have been framed keeping in view the widespread duty evasion by Pan Masala/Gutka manufacturers and the provisions of various rules of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 including Rule 10 thereof must be seen in this background. The interpretation of Rule 10 sought by the appellant would be not only against the provisions of this rule but would also be against the smooth functioning of the system of collection .....

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in the factory of the notified goods was in operation. Appellant is not entitled for abatement. - Decided against assessee - E/55262/2013-EX - Final Order No. A/50619/2015-SM(BR) - Dated:- 16-3-2015 - Shri Ashok Jindal, Member (J) Shri Kapil Vaish, Advocate, for the Appellant. Shri A.K. Dhawan, AR, for the Respondent. ORDER The appellant is in appeal against the impugned order rejecting the rebate claim of ₹ 7,12,500/- by the lower authorities. 2. The brief facts of the case are that .....

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d manufactured branded chewing tobacco with the help of 2 packing machines during the said period. In accordance with Rule 6(4) read with Rule 8 of Packing Machine Rules, 2010, there were 2 operating packing machines installed in the factory premises of the appellant during the month. The Central Excise duty as prescribed vide Notification No. 16/2010-C.E., dated 27-2-2010 as amended by vide Notification No. 19/2010-C.E., dated 13-4-2010, was required to be calculated by the appellant under Rule .....

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9-2011, within the prescribed due date. (ii) One single tract (without lime) packing machine for packing pouches of RSP of ₹ 2.00 (hereinafter called as Second Machine ) was operative for the period 16-9-2011 to 30-9-2011 and duty of ₹ 14,25,000/- was deposited by the appellant vide GAR-7 No. 02029, dated 4-10-2011, within the prescribed due date. 3. Subsequently, the appellant filed abatement claim for ₹ 7,12,500/- on pro rata basis, before the Assistant Commissioner, Cen .....

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erative for the period 1-9-2011 to 30-9-2011, therefore, the abatement claim for ₹ 7,12,500/- for non-operation of second machine during 1-9-2011 to 15-9-2011 was not admissible as appellant has not fulfilled the condition of completely stopping the manufacturing activity, because their machine remained operative during the said period. Accordingly, a show cause notice dated 14-12-2011 was issued to the appellant as to why their abatement claim of ₹ 7,12,500/- which was not in agreem .....

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month and the same cannot be charged for full month in case the same remained operative for part of the month in terms Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 and the assessee would not be liable to duty for the entire month even machine was operative for the past month. 5. Ld. AR reiterated the findings of the lower authorities. 6. Heard the parties and considered the submissions. 7. In this case, I f .....

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In case a factory did not produce the notified goods during any continuous period of fifteen days or more, the duty calculated on a proportionate basis shall be abated in respect of such period provided the manufacturer of such goods files an intimation to this effect with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, at least seven days prior to the commencement of said period, .....

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ntends to restart his production of notified goods, he shall inform to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, of the date from which he would restart production, whereupon the seal fixed on packing machines would be opened under the physical supervision of Superintendent of Central Excise. From the perusal of this Rule, it is clear that - (a) for stoppage of production must be for a continuous period of 15 days or more, the .....

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Pan Masala is manufacturing Gutka/Pan Masala pouches of different RSPs and for a certain period of 15 days or more, he stops the production of only one particular RSP, he will not be entitled for abatement, if continues the production or clearances of Pan Masala/Gutka of other RSPs by operating those machines. I find that from the language of Rule 10 it is clear that for claiming abatement under Rule 10, there must be total stoppage of the machines which have to be sealed in such a manner that s .....

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