2015 (11) TMI 320

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....y. In exercise of the powers under Section 3A(1) of the Central Exercise Act,1944 the Central Government has notified that pan masala and also pan masala containing tobacco packed in retail packs could be levied for duty under Section 3A. Notification No. 30/2008-CE (N.T.), dated 1.7.2008 was issued framing the Central Excise (Determination of Retail Sale Price of Excisable Goods) Rules, 2008 (hereinunder referred to 'PMPM Rules'). Rule 4 provides that the relevant factor to the production of notified goods shall be the number of packing machines in the factory of the manufacturer. Rule 5 specifies the deemed quantity of notified goods to be produced having a retail price as specified in column 2 of the Table and the number of pouch....

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....n masala pouches. The returns were also filed for these months which showed manufacture/clearances of pan masala with tobacoo having RSP of 50 p. On the basis of this information provided by the assessee, the Department inferred that during the each of these months the assessee used the installed machines for manufacturing of pan masala with tobacoo of having a retail sale price of Rs. 1 per pouch as well as having a new retail sale price of Rs. 0.50 and, on this basis, invoked the first proviso to Rule 8 of the 'PMPM Rules'. For facility, the said provision, Rule 8 and the provisos are extracted hereunder:- Rule 8. Alteration in number of operating packing machines- In case of addition or installation or removal or uninsta....

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....retail sale price, i.e. under Serial No. 1 a pan masala or a pan masala with tobacoo manufactured having a retail sale price upto Rs. 1, the number of pouches on which Central Excise Duty would be levied would be 37,44,000. The retail sale price has been denied under Rule 2(f) which is extracted hereunder:- (f) "retail sale price" means retail sale price as specified by the Central Government, in Explanation 3 to the opening paragraph in the Notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 42/2008-C.E., dated 1st July, 2008; A perusal of Rule 2(f) indicates that the retail sale price would be as specified by the Central Government in Explanation-3 to the opening paragraph of the Not....