Pan masala machine capacity rules require one machine treatment within the same price slab, barring double duty

Rule 8 of the Pan Masala Packaging Machines Rules, 2008 is applied only where products on a packing machine fall in different retail sale price slabs; where both products fall within the same slab, the machine is treated as one packing machine and double duty is not justified. The demand was also noted as prima facie time-barred. On that basis, the appellant was granted waiver of pre-deposit and stay of recovery.

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Issues: Whether Rule 8 of the Pan Masala Packaging Machines (Capacity Determination and Collection of Duty) Rules, 2008 applied so as to justify treating one packing machine as two machines and demanding double duty where the products carried different retail sale prices but fell within the same slab, and whether pre-deposit and recovery deserved to be stayed.

Analysis: The demand was noticed as being prima facie barred by limitation. On merits, the order followed the Tribunal's earlier view that Rule 8 operates only where the pan masala products fall under different slabs. Where both retail sale prices fall within the same slab, the machine is to be treated as one packing machine only, and the rationale for double duty does not arise.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery.

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