2016 (5) TMI 511

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....#39;. The factual matrix necessary to be noticed is that while exercising powers conferred by sub-section (2) & (3) of Section 3A of the Central Excise Act, 1944, the Central Government framed the Rules in the name of "Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008". The Rules aforesaid came into force on 01.7.2008. The Rules of 2008 are having application to Pan Masala and Pan Masala containing tobacco, commonly known as 'Gutkha'. As per Rule 4, the factor relevant for production of notified goods shall be the number of packing machines in the factory of the manufacturer. Rule 5 of the Rules of 2008 provides a mode for determination of tax liability and according to that, the quantity of ....

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....in the Rules of 2008 on March 1st, 2015, according to which the rate of duty per packing machine per minute was changed. As per the new criteria, the rate of duty per packing machine per month is based on the retail sale price of a pouch upto a definite quantity of the pouches of a notified goods. The petitioner on 28th February, 2015 communicated to the Assistant/Deputy Commissioner, Central Excise Division, Jodhpur that the packing machines available at its factory premises can operate at a maximum speed of 700 pouches per minute, hence redetermination of the annual capacity of production is desirable. Acting upon the representation dated 28.2.2015, an inspection was made by the Superintendent (Technical) as per the directions given by....

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....prescribes for any kind of change or alteration in the production speed, thus, the determination of the production rate of 684 pouches per minute is absolutely non-consequential. Heard learned counsels. As per Rules of 2008, a declaration is required to be made by the manufacturer with regard to the packing speed at which a packing machine operates in relation to notified goods. The petitioner submitted its declaration on 27.1.2015 wherein the maximum capacity for operation of the packing machine in relation to packing of notified goods was "upto 700 pouches per minute". An amendment was introduced in the Rules of 2008 under a notification dated 01.3.2015, according to which the rate of duty per packing machine per minute was re-deter....