TaxTMI 
TaxTMI 
2018 (3) TMI 175
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....re that the respondent is a manufacturer of branded Chewing Tobacco and operating under Compounded Levy Scheme as per Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 (in short, CTUTPM Rules, 2010) and is having installed one single track FFS packing machine. The said machine was sealed/uninstalled during the periods 15.04.2015 to 22.05.2015 and 01.06.2015 to 15.06.2015 in the months of May 2015 and June 2015 respectively. The respondent deposited the central excise duty on prorata basis for the number of days the machine remained operational during the month of May 2015 and June 2015 amounting to Rs. 11,21,806/- for May 2015 and Rs. 19,32,000/- for June 2015. However, t....
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....ufacturer does not intend to operate. He invited attention to Rule 7 of the said Rules and contended that the duty has to be calculated on the basis of the number of machines operating during that month. He also contended that as per the 2nd proviso of Rule 8, only the non-working of an installed packing machine was deemed to be an operating packing machine for the month. He further argued that the 5th proviso of Rule 9 was applicable as the number of operating packing machines had increased on account of installation of a de-sealed packing machine during the impugned periods. He relied on the following case laws: (i) Trimurti Fragrance Pvt. Ltd. vs. CCE, Delhi-II 2016 (335) ELT 167 (Tri.-Del.) (ii) Jaiswal Products vs. CC....
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.... regard, the judgment of this Tribunal in the case of Trimurti Fragrance Pvt. Ltd. (supra) is applicable to the facts of this case, wherein the Tribunal held as below: "7. Rule 8 obligates a manufacturer to file a declaration in Form1 serial No.5 of the Form I requires intimation of the number of single track packing machines available in the factory; serial No.6 requires intimation as to the number of packing machines which are installed in the factory of the declarant; and serial No.7 requires intimation /specification of the number of packing machines installed, which the manufacturer intends to operate in its factory for production of notified goods. Rule 7 specifies that the duty payable for a particular month shall be calcula....
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....e and compelling that where during any period, a manufacturer intimates its intention not to operate a packing machine and the same is sealed by the authorized officers, such machine is deemed have been uninstalled in terms of Rule 6(5). Third proviso to Rule 9 provides that in case of increase in the number of operating packing machines in the factory during the month on account of addition or installation of packing machines, the differential duty amount, if any, shall be paid by the 5th day of the following month. 9. In the facts of this case, the sealing of the 12 machines of the appellant occurred prior to 1.7.2013. The machines were inoperative during 1.7.2013 to 7.7.2013. The machines were unsealed and reinstalled on 8.7.13.....