TaxTMI 
TaxTMI 
2018 (4) TMI 764
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....ber. 2. With the consent of both sides, we proceed to decide the appeal on merits. 3. The present appeal is filed by the assessee-Appellants against the Order-in-Original No. 07/D-I/2011 dated 31.10.2011 passed by the Commissioner of Central Excise, Delhi-I. The period in dispute is May to September, 2010. 4. The brief facts of the case are that, during the period under consideration, the assessee-Appellants were engaged in the manufacture of 'Gutka' i.e. Pan Masala containing tobacco which attracts the Central Excise Duty under the Central Excise Tariff Act, 1985. The activity of the assessee-Appellants was subject to Section 3A of the Central Excise Act, 1944 read with Pan Masala Packing Machines (Capacity Determination and Collection ....
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....e excisable notified goods. For this purpose, he has drawn our attention to para 7 of the show cause notice which provides details (in a table) pertaining to the machines sealed and desealed. He read out Rule 8 and 10 of the Rules, which are reproduced below : "Rule 8. Alteration in number of operating packing machines- In case of addition or installation or removal or uninstallation of a packing machine in the factory during the month, the number of operating packing machine for the month shall be taken as the maximum number of packing machines installed on any day during the month: Provided that in case a manufacturer commences manufacturing of goods of a new retail sale price during the month on an existing machine, it shall be dee....
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....ends to restart his production of notified goods, he shall inform to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, of the date from which he would restart production, whereupon the seal fixed on packing machines would be opened under the physical supervision of Superintendent of Central Excise." 8. On the other hand, the learned DR justified the impugned order. 9. We have heard both sides at length and gone through the material available on record. During the period under consideration, the assessee-Appellants were required to discharge the duty liability under the Rules, notified under Section 3A of the Central Excise Act, 1944. To this effect, the assessee-Appellants were ....
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....case of non-working of an installed machine during the month for any reason whatsoever, it shall be deemed to be operating packing machine for the month. 11. Rule 9 provides that the duty payable for the month shall be paid on or before 5th day of the month and if subsequent to payment of duty, there is increase in the number of operating machines, the differential duty shall be paid by the 5th of the next month. 11. Rule 10 provides for abatement of duty in case the factory did not produce the goods for any continuous period of 15 days or more. The abatement is allowed subject to the condition mentioned in this Rule. 12. In the instant case, the assessee-Appellants were manufacturing gutka pouches of Rs. 1/- MRP. At the cost of repetiti....
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....ivity whatsoever and no removal of goods by the manufacturers; and (c) prior intimation, at least three days prior to closure, must be given to jurisdictional Central Excise Officer who shall seal all the packing machines available in the factory in such a manner that the same cannot be operated during the period of closure. In the instant case, it is clear that the entire factory was not closed. A few machines were working and production was on. It is not the case of the assessee-Appellants that entire factory was closed for a continuous period of 15 days or more during which there was absolutely no manufacturing activity and no removal of the finished goods. Therefore, abatement under Rule 10 is not available. Hence, we are of the view....