TMI Blog2016 (7) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. - Appeal Nos. E/55360/2014-EX[SM], Appeal Nos. E/55563/2014-EX[SM] - Final Order Nos. 50144-50145/2016 - Dated:- 25-1-2016 - Mr. R. K. Singh, Member ( Technical ) Mr. Vaibhav Bhatnagar, DR - for Revenue Mr. Ashwani Sharma, Advocate - for M/s. Vasundhara Flavours ORDER Per Mr. R. K. Singh The assessee is in appeal against Order-in-Appeal in terms of which penalty of ₹ 3,60,000/- and interest for the period 05.06.2012 to 29.06.2012 was confirmed on the ground that the appellant operated the machine during the period 28.06.2012 to 30.06.2012 and therefore the duty of ₹ 3,60,000/- should have been paid by 05.06.2012 but was paid on 29.06.2012. 2. Revenue is in appeal against the same Order-in-Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 days from July, 2013. This interest component was recovered from the appellant under Section 11AA, by deducting the said amount from the admissible amount of abatement allowed to the appellant. 4. The appellant is a manufacturer of pan masala and chewing tobacco and installed 12 pan masala packing machines. The procedure of installation, operation and remittance of excise duty on the appellant/manufacturer is governed by the Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 (the Rules). Under Rule 9 of the Rules, monthly duty payable on notified goods shall be paid by the 5th day of same month and intimation in Form-2 is to be filed with the jurisdictional Superintendent of Central Excise before the 10th da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing month. On the substratum of this contention, ld. Counsel for the appellant urges that since reinstallation of the packing machines had occurred on 8.7.2013 the liability to remit duty under third proviso to Rule 9 was by 5th August, 2013 and thus there was no liability to interest. 7. Rule 8 obligates a manufacturer to file a declaration in Form1 serial No.5 of the Form I requires intimation of the number of single track packing machines available in the factory; serial No.6 requires intimation as to the number of packing machines which are installed in the factory of the declarant; and serial No.7 requires intimation /specification of the number of packing machines installed, which the manufacturer intends to operate in its facto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... true, fair and interactive analysis of the Rules and in particular Rules 6 to 13 the conclusion is irresistible and compelling that where during any period, a manufacturer intimates its intention not to operate a packing machine and the same is sealed by the authorized officers, such machine is deemed have been uninstalled in terms of Rule 6(5). Third proviso to Rule 9 provides that in case of increase in the number of operating packing machines in the factory during the month on account of addition or installation of packing machines, the differential duty amount, if any, shall be paid by the 5th day of the following month. 9. In the facts of this case, the sealing of the 12 machines of the appellant occurred prior to 1.7.2013. The m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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