2017 (11) TMI 701

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....ppellant was engaged in the manufacture of pan masala and gutka which falls under the schedule of the Central Excise Tariff Act, 1985. The appellant was availing the "compound levy scheme", notified vide Notification No.30/2008-CE (NT) dated 1.7.2008 issued under Sub section (2) & (3) of Section 3A of the Act called Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 (hereinafter called as Rules). The appellant was having two machines in its factory. One machine was continuously working and duty was paid as per the compound levy scheme. The dispute arose regarding the second machine which was closed from time to time. Regarding the second machine, prior information was given, so, it was sealed for some tim....

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....e department is against the law as per the ratio laid down by Hon'ble Gujarat High Court in the case of Commissioner Vs. Thakkar Tobacco Products P. Ltd. - 2016 (332) ELT 785 (Guj) where it was observed that- "15. Besides, in the light of the findings recorded by the Tribunal to the effect that it is not disputed that the adjustments made were not more than the amounts of duties mandated to be abated as per Rule 10 of the PMPM Rules, the action of the respondent -assessee in computing the proportionate amount of duty towards the abatement and setting it off against the duty payable in the next month does not adversely affect the revenue in any manner. The abatement, in the opinion of this Court, is no akin to refund and means reduction o....

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....en file the refund claim for the period when machine was sealed. 7. We have heard both sides and gone through the material available on record. 8. We find that the view of the department is that machine No.2 was operating for manufacturing pouch for MRP Rs. 1. Initially, it was operating from 1.7.2012 to 20.12.2012 and remaining period not working (sealed) condition during the period 21.7.12 to 31.7.2012. The assessee deposited the duty amount for the month of July in advance vide e-receipt. As per the composite scheme, for production of pan masala and gutka, duty is payable. When there is no production due to sealing of the machine (as in the instant case), the factory cannot be considered closed completely as one machine was continu....