2019 (2) TMI 938

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....2. The Noticee were engaged in the manufacture of Pan Masala containing chewing tobacco (Gutkha) under the brand name "KESAR PREMIUM GUTKHA" and "KESAR GULAB GUTKHA" of MRP Rs. 1.50 per pouch and Rs. 5.00 per pouch falling under Chapter heading No.24039990 and registered with Central Excise Department vide Central Excise Registration No.ABBPK9377NXM002. 3. The Noticee were having 10 Pouch Packing Machine of MRP Rs. 1.50 per pouch and one Pouch Packing Machine of MRP Rs. 5.00 per pouch. On the Noticee's request dated 28.04.2011, three machines out of these ten machines of MRP Rs. 1.50 per pouch were sealed on 01.05.2011 and one pouch packing machine of MRP Rs. 5.00 was sealed on 01.05.2011 on Noticee's request dated 27.05.2011. Thereby se....

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.... verification is required to be done at the time of sealing/de-sealing of the said machines. And since the Noticee did not operate under physical control they were free to manufacture/clear the said goods at any time on their own. 8. Thus a period of 25 days is calculated on account of removal of seal by the Noticee in contravention of Central Excise Rules & Pan Masala Packing Machines (Capacity Determination & Collection of Duty) Rules, 2008 on the said machines. 9. The levy of Central Excise Duty on Pan Masala containing Tobacco commonly known as Gutkha falling under Tariff item 24039990 of the Central Excise Tariff Act, 1985, under Notification No.42/2008-CE dated 01.07.2008 per pouch packing machine of MRP Rs. 5.00 per pouch is le....

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....e of adjudication, the respondents took a categorical stands that as their factory was closed from 16/06/2011 to 30/06/2011, lot of dust had accumulated on the machines. They directed their employees to clean the factory as also to remove dust from the machine and it seems that during the course of cleaning of the machines, the seal was detached and fell down. The seal was found immediately next to the machine and the machine was admittedly unplugged with the electrical connection, thus establishing that the same was not in a working condition. Further they contended that no raw material or the final product was found near the machine thus establishing that the same was not used during the period of closure. They also submitted that an enqu....