TaxTMI 
TaxTMI 
2015 (6) TMI 691
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....ection of Duty) Rules, 2008 [herein after referred to as PMPM Rules]. During the months of June, July, August, October and November, 2009 the Appellant in addition to manufacturing the Gutkha pouches of RSP Re.1/- per pouch in respect of which declaration had been made by them in Form -1, also manufactured gutkha pouches of RSP of Rs. 0.50 paise per pouch on the same packing machines. The appellant discharged their duty liability at per machine per month rate specified in the Notification No.42/2008-CE which was applicable for the RSP slab of "upto Re.1/-". The Department invoking the first proviso to Rule 8 of the PMPM Rules, 2008, asked the assessee the pay the duty for the above months by treating each machine on which gutkha pouchs of R....
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.... Kumar, ld. Jtc.CDR opposed the stay application by reiterating the findings of the order of the Commissioner in the impugned order. 5. We have considered the submissions from both sides and perused the record. Under the PMPM Rules, 2008, issued under Section 3A of the Central Excise Act, 1944, duty on pan masala and gutkha is charged on deemed production basis. In terms of Rule 5 of PMPM Rules, 2008, the number of gutkha/pan masala pouches, deemed to have been manufactured per operating packing machines per month are specified for different RSP slabs. For example, the machine on which gutkha/pan masala pouhces of RPS upto Re.1/- per pouch are manufactured, would be deemed to have manufactured 37,44,000 pouches per month. Similarly, the pa....
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.... from the RPS slab of the existing RSP- (1) Section 3A empowers the Central Government to notify the goods, keeping in view the extent of duty evasion in respect of such goods and to safeguard the interest of revenue, for levy of duty on the basis of annual capacity of production or on the basis of certain specified factor relevant to the production of such goods and the quantity that is "deemed to be produced by use of a unit of such factor. In terms of PMPM Rules, 2008, read with Notification No.42/08-CE dated 1.7.08, duty liability of a factory manufacturing pan masala or gutkha has been fixed on per operating packing machine per month basis for gutkha/pan masala of different retail sale price (RSP). Rule 5 specifies the number of pouch....
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....n levy of duty on the same production twice. (2) Under Section 3A read with PMPM Rules, 2008, duty on pan masala/gutkha, manufactured and cleared in retail packs is be charged on deemed production per operating packing machine per month basis, irrespective of the actual production and clearances. The quantity of pouches of different RPS slabs, deemed to have been produced is specified in Rule 5 and Notification No.42/08-CE specifies the total duty chargeable per machine per month for the pan masala/gutkha pouches of different RSP slabs which are the same slabs as those specified in Rule 5 of the PMPM Rules. First proviso to Rule 8 cannot be given an interpretation which results in levy of duty on the quantity which is more than the quantit....