TaxTMI 
TaxTMI 
2017 (5) TMI 817
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....tral Excise & ST,Delhi-III Sonepat, therefore, the application for modification of cause title is accepted and cause title is as M/s. H.B. Manufacturing Industries Pvt. Limited vs. Commissioner of Central Excise & Service Tax, Delhi-III, Sonepat. Now, the appeal is taken up for disposal. 3. The facts of the case are that the appellant is engaged in the manufacture of Chewing Tobacco (without lime tube) and paying duty under Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010. As per the said Rules, the assessee is required to pay the duty on Chewing Tobacco (other than khaini) on the basis of speed of packing machines. The speed of the machines was put in two categor....
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.... at which machines can be operated examined by officers and Chartered Engineer. At the time of visits and as per the certificate dated. 08.03.2015, the Chartered Engineer has observed as under:- "Keeping in view of type of all these machines being Rotary FFS (Form Fill Seal) type machines and controlled through PLC (Programmable Logic Control) and has MMI (Man Machine Interface) with a digital touch control Display Panel, through which various input and output parameters can be set and controlled to desired workable specifications. I am of the opinion that the machine could easily be operated beyond 350 PPM which is commensurate with such type of machines. Although not examined in running conditions, but such type of machines can have ....
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....ed Engineer in his certificate was of the opinion that maximum speed of the machines could depend on the capacity of the Servo Motor sets put in the machines. However, he did not ascertained the maximum capacity of the Servo Motors sets and opined that machines could run beyond speed of 350 PPM. The said certificate of the Chartered Engineer is without determination of the capacity of Servo Motors fixed in the machines is illegal and unsustainable. Therefore, the maximum speed at which machines could be operated was determined by the officer and Chartered Engineer is to be accepted by the Department. The case of the Department is that the speed of the machine could be increased by the company or the manufacturer of the machines. The Departm....
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.... were found as 277.5 PPM, 277 PPM and 279 PPM respectively. These facts are not in dispute. The Chartered Engineer has opined that the speed of the machines can be increased and depend on the Servo Motor but he has not given the technical specification of the Servo Motor and without examining the Servo Motor, he has not stated how the speed of the machines can be increased. Moreover, the technical literature of the machines provided by the manufacturer shows that the maximum speed of the machines is 280 PPM. As the manufacturer of the machines itself has stated in the technical literature that the maximum speed of the machines is 280 PPM and on physical verification of the machines it was found that the speed of the machines is similar. In ....
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....imum speed at which the machines can be operated or any changes in the submissions made under Form-I & its annexure dated 20.01.2016 is to be carried out." Further in the case of SPPL vide order dated. 07.04.2013, the Adjudicating Authority passed the following order:- "The maximum packing speed at which the machines tabulated in table 2 above of M/s Som Pan Products Private Limited, C-123, can be operated for manufacture of notified goods is 700 Pouches Per Minute at present till any deviation/alteration is not done in the machines. I also direct M/s Som Pan Products Private Limited under Rule 6 of Pan Masala Packing Machines (Capacity Determination And Collection Of Duty) Rules, 2008 and Chewing Tobacco and Unmanufactured Tobacco Packi....