TaxTMI 
TaxTMI 
2016 (1) TMI 831
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....visions of Pan Masala Packing Machines [Determination of Capacity and Collection of Duty] Rules, 2008. It was noticed that during August 2008, December 2008, August 2009 and September 2009, the appellants have manufactured gutkha with Retail Sale Price (RSP) of Rs. 1/- and Rs. 0.50/-. Since they have paid duty as per the duty liability calculated on the basis of RSP of Rs. 1/- during this period, invoking the provisions of Rule 8, the Department initiated proceedings against the appellant for recovery of differential duty of Rs. 75,00,000/-. The case of the Revenue is that as per the proviso to Rule 8 when a manufacturer commences manufacturing of goods of a new Retail Sale Price during the month on an existing machine, it will be deemed to....
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.... 18/2010-CE (NT) in respect of 1st proviso to Rule 8 of Chewing Tobacco and Unmanufactured Tobacco Packing Machines [Capacity Determination and Collection of Duty] Rules, 2010 which are similar to the impugned provisions of proviso to Rule 8 in the present case. The learned Counsel pleaded that the effect of the above-mentioned notification is that where a manufacturer uses an operating machine to produce pouches of different Retail Sale Prices during a month, he shall be liable to pay duty applicable to the pouch bearing the highest Retail Sale Price for the whole month. 3. The learned Counsel relied on the Tribunal's final order No. 50719 of 2015 - EX (BR) dated 18/3/2015 in the case of Trimurti Fragrance (P) Ltd. vs. CCE & ST, Kanpu....
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....amined by the Tribunal in the case of Trimurti Fragrance (P) Ltd. (supra} involving similar set of facts. The Tribunal observed:- "8.1 In our view the expression "new retail sale price" has to be understood in the sense in which it is understood in Ruie 5. Rule 5 of the PMPM Rules, as explained above, specifies the deemed production per operating machine per month and this deemed production is specified for different RSP slabs. The rate of duty per machine per month specified in Notification No. 42/2008-CE is on this deemed production only. Therefore, first proviso to Rule 8 cannot be interpreted so as to result in levy of duty on deemed production which is more than the deemed production as specified in Rule 5. In terms of Rule 5, so lon....