2016 (2) TMI 1039

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.... having been denied. 2. The brief facts are that the appellant is a manufacturer of pan masala and Gutka with the aid of form fill & seal machine, and is liable to pay tax under the provisions of Section 3A of the Act read with 'Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 (hereinafter referred to as 'the Rules') under Notification No. 42/2008-C.E. The appellant have single form fill and seal machine in the factory. Vide intimation letter dated 15-7-2010 the appellant informed the Revenue about breakdown of the machine, they had shut down production and requested for sealing of the machine. Such intimation was filed on 16-7-2010 and in response thereto the machine was sealed on 16-7-2010 at ....

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....ased to reject the appeal upholding the findings of the Assistant Commissioner. 3. Being aggrieved the appellant is in appeal before this Tribunal. The learned counsel urges that the time provided in the Rules of 3 days prior intimation is for normal situation, where the manufacturer wants to suspend production. But in case of a breakdown it is not practical to follow the period of 3 days as per Rules. The whole purpose of the prescribed period as explained by Hon'ble Allahabad High Court in CCE v. Rajat Industries Pvt. Ltd. - 2015 (325) E.L.T. 579 (All.), is that the revenue must have sufficient time to reach the premises and seal the unit and or machines so that clandestine manufacturing and removal of goods does not happen. Where....

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....actor relevant to the production, as the Central Government may, by notification in the Official Gazette, specify and collected in such manner as may be prescribed. Provided that where a factory producing notified goods did not produce the notified goods during any continuous period of 15 days or more, the duty calculated on a proportionate basis shall be abated in respect of such period if the manufacturer of such goods fulfils such conditions as may be prescribed. From a plain reading of Section 3A(3) of the Act, it is evident that the prima facie condition is that the production of the notified goods should have been stopped for continuous period of 15 days or more. Further, I find that the period of 3 days as in Rule 10 of the Rul....