2018 (1) TMI 345
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....069020 respectively with the aid of packing machines and packed in pouches. They were paying Central Excise Duty in accordance with the Notification No.42/2008-C.E. dated 01.07.2008 as amended from time to time and Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008. ii. The appellants had paid the Central Excise duty for 2 operating machines in the month of June, 2013. In respect of two (02)rotary single track FFS machines which were in operation w.e.f. 01.06.2013, for packing of Pan Masala pouches of MRP Rs. 1.00/- per pouch, they had paid the Central Excise duty amounting to Rs. 28,00,000/- (Rs.14,00,000/- per machine) on 01.06.2013. In respect of extra one rotary single track FFS machines (new purcha....
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....duty with interest and also imposed penalty. 5. Ld. Counsel draws my attention to the facts of the case and also Rule 9 of the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 (Hereinafter refer to as the Rules) and submits that the 3rd Proviso of the said Rule has been misinterpreted by the lower Authorities. He reads the 3rd proviso and submits that the proviso seeks to confirm demand requires the assessee to pay differential duty and that would be from the date of installation of any new machine. He would also bring to my notice the provisions of Section 3A (ii) and the 2nd proviso thereto wherein it has been very clearly stated that the determination of the annual production will be on proportiona....