TaxTMI 
TaxTMI 
2011 (3) TMI 658
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....r the appellant and Shri R.S. Sangia, learned DR appearing for the Revenue, we find that the said duty stands confirmed against the applicant on the findings of clandestine removal of gutkha manufactured by them. The said findings are in turn based upon the declarations submitted by the appellant in terms of a Circular No. 854/12/2007-CX., dated 7-9-07 which required the manufacturers of pan masala, gutkha and chewing tobacco to submit a declaration with their jurisdictional Central Excise Authorities by 12-9-2007, giving details of packing machines used for filling and packing of pouches or containers, the number of shifts operated in the factory and the record of the main inputs etc. The said circular also prescribed procedure for a non w....
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....r failure, maintenance of the machine, delay in receipt of the raw materials and its processing, changes in the size of pouches etc. The circular does not require them to pay duty on the average production but the duty is required to be paid on the actual production and the appellant has been intimating the department about the closure of the production activities on account of festival, labour problems, market condition etc. They have also submitted that during the festival periods, their production matched the declared average production and even sometimes was more than that. They also contended that the circular was, in fact a pre-exercise by the Revenue in as much as subsequently the duty on the gutkha was imposed on compounded levy sch....
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....e nature of compounded levy scheme requiring an assessee to pay duty on the declared average production. The duty was required to be paid on the goods actually manufactured and cleared. At this stage it would be relevant to refer to para 14.14 of the Commissioner's order which is being reproduced below for ready reference. "I find that the assessee has furnished the declaration on 7-9-07 about the average production of the pouches. The assessee has been filing the ER-1 returns regularly and has been periodically intimating about change of shift, shutting down of plant, sealing or desealing of machines, closure of production activity, starting of production of new brand, extension of closure, sale of machines to the Range Superintendent. If....