2013 (2) TMI 671

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....ents are engaged in the manufacture of Pan Masala containing Tobacco falling under Ch. 2403 99 20 of the CETA, 1985. They are working under Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 i.e. compounded levy scheme under the provisions of Section 3A of CEA, 1944. The respondent's rebate claims were sanctioned by the original authority vide impugned Orders-in-Original. Being aggrieved by the impugned two orders, the department filed two appeals before Commissioner (Appeals) on the ground that due to rounding of Rs. 2.3875 to Rs. 2.39 the actual amount refunded Rs. 35796225/- (Rs. 2.39 X 1,49,77,500). In terms of provision contained in Section 37D of the Central Excise Act, 1944, it is crystal clear th....

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.... amount of rebate and rounding off the amount has been disputed hence, it is squarely a law point involving scope of Section 37D of Central Excise Act, 1944 and an appeal in CESTAT under Section 35B(2) has been filed. However, the above rounding off will also affect the rebate amount though the admissibility of rebate remains unaltered, therefore, for abundant precaution to safeguard revenue this appeal is being preferred. 4. Show cause notices were issued to the respondent under Section 35EE of Central Excise Act, 1944 to file their counter reply. No counter reply is filed in these cases till date. 5. Personal hearing scheduled in this case on 9-8-2012, 12-10-2012 and 20-12-2012 was not attended by anybody on behalf of eith....

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....these Revision Applications on ground mentioned in para 4 above. 8. Government observes that the applicant department is basicly relying upon provisions contained in Section 37D of the Central Excise Act, 1944. The said provision reads as follows :- "the amount of duty, penalty, interest, fine or any other sum payable, and the amount of refund or any other sum due under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of rupee consisting of paise then, if such part is 50 paise or more, it shall be increased to one rupee and if such part is less than 50 paise it shall be ignored." From perusal of above provisions, it is ample clear that the method of r....