TaxTMI 
TaxTMI 
2017 (10) TMI 69
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....a Containing Tobacco, registered with Department and clearing their goods, under the compounded levy scheme in terms of Notification No. 30/2008 CE (NT) dated 01/07/2008, being the Pan Masala Packing Machines (Capacity Determination & Collection of Duty) Rules, 2008 (hereinafter referred to as 'PMPM' Rules, 2008). The appellant filed an abatement claim for Rs. 1,56,11,871/- on 03/11/2009 on the ground that during the month of October, 2009 they operated one, single-track FFS Machine for manufacturing '18 gm. Rajnigandha Pan Masala', having RSP of Rs. 24/- per pouch and two FFS Machines for producing Rajnigandha Pan Masala, having RSP of Rs. 6/- per pouch for 15 days only but had deposited Rs. 3,02, 48,000/- towords the duty liability for the month of October, 2009. That the appellant had filed an abatement claim under Rule 10 of the PMPM Rules, 2008. The Adjudicating Authority vide the Order-in-Original dated 29/01/2010 rejected the said refund/abatement claim on the ground is that the word used in the second clause first proviso of Rule 10 is "goods" and not "notified goods" and therefore no removal of goods including inputs should have been effected by the appella....
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....and interest The monthly duty payable on notified goods shall be paid by the 5th day of same month and an intimation in form 2 shall be filed with the Jurisdictional superintendent of Central Excise before the 10th day of the same month. 6th proviso provided also that in case it is found that a manufacturer has manufactured goods of those retail sale prices, which have not been declared by him in accordance with provisions of these rules or has manufactured goods in contravention of his declaration regarding the plan or details of the part or section of the factory premises intended to be used by him for manufacture of notified goods of different RSP and the number of machines intended to be used by him in each of such part or section, the rate of duty applicable to goods of highest RSP so manufactured by him shall be payable in respect of all packing machines operated by him for the period during which such contravention took place. Rule 11 Retail sale price to be declared on the package Every manufacturer shall declare the retail sale price of the notified goods on the package of such goods: Provided that if the manufacturer fails to declare the RSP before removing the g....
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....umed for the manufacture of final products on the ground that records are kept by it at the recipient unit and would indicate its intended use and substantial compliance of the procedure as set out in Chapter X of the Central Excise Rules, 1944. The Hon'ble Supreme Court have observed as follows: "22. The law is well settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the Statute and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirements of those conditions must be obeyed or fulfilled exactly, though at times, some latitude can be shown, if there is a failure to comply with some requirements which are directory in nature, the non-compliance of which would not affect the essence or substance of the notification granting exemption. In Novopan Indian Ltd. (supra), this Court held that a....
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....sential to achieve the object and purpose of the rule or the regulation. Such a defence cannot be pleaded if a clear statutory prerequisite, which effectuates the object and the purpose of the statute has not been met. Certainly, it means that the Court should determine whether the statute has been followed sufficiently so as to carry out the intent for which the statute was enacted and not a mirror image type of strict compliance. Substantial compliance means actual compliance in respect to the substance essential to every reasonable objective of the statute and the court should determine whether the statute has been followed sufficiently so as to carry out the intent of the statute and accomplish the reasonable objectives for which it was passed. Fiscal statute generally seeks to preserve the need to comply strictly with regulatory requirements that are important, especially when a party seeks the benefits of an exemption clause that are important. Substantial compliance of an enactment is insisted, where mandatory and directory requirements are lumped together, for in such a case, if mandatory requirements are complied with, it will be proper to say that the enactment has been s....