TaxTMI 
TaxTMI 
2023 (6) TMI 235
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.... 3. Revenue is aggrieved against the impugned order passed by the learned Commissioner wherein he had dropped the proposal for demanding differential duty in terms of 7th Proviso to Rule 9 of the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 (i.e., based on the number of operating packing machine declared in the previous month in respect of which duty was last paid or on the basis of total number of packing machine found available in respondent's factory premises at any time subsequent to default in the monthly payment, whichever is higher). Hence, this present appeal. 4. Learned Authorised Representative for the Revenue submits that in terms of Rule 9 of the PPM (CDCD) Rules, 2008, respondents are required to pay monthly duty on the notified goods shall before 5th day of the same month. Further, he submits that respondent had not paid appropriate duty for the month of August 2008 to March 2009 within the due date and they continued to operate and later, respondent discharged differential duty liability along with interest in terms of proviso 2 to Rule 9 of PPM (CDCD) Rules, 2008. Whereas the respondent ought to have paid the duty for ....
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....t monthly duty payable for the month of July, 2008 shall be paid on or before 15 h day of July, 2008: ------------------ ----------------- Provided also that in case a manufacturer does not pay the duty payable, and continues to operate any packing machine, he shall be liable to pay the duty for the remaining months of the financial year based on the number of operating packing machines declared in the month for which duty was last paid by him or the total number of packing machines found available in his premises at any time thereafter, whichever is higher. "7th Proviso to Rule 9 of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 vide Notification dated 8/2010 dated 27.2.2010. Rule 9. Manner of payment of duty 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: ...................... ....................... ...................... Provided also that in case a manufacturer does not p....
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....duty was payable but is not paid and the manufacturer continues to operate in packing machine, the manufacturer would be liable to pay duty for the remaining month of the financial year on the number of packing machines declared for the month for which the duty was last paid by him or the total number of packing machines found / available in his premises, whichever is higher. Therefore, the proviso restricts the liability to pay the duty for the remaining months meaning thereby the period during which the declaration is either not filed or the declaration is contravened. The availability of the packing machines may be assessed either on the basis of the declaration made in the month when the duty was last paid or the available machines in the premises by verification. Therefore, so far as the availability of the packing machines are concerned, the word whichever is higher would apply but the fact remains that the liability to pay duty is for the remaining months meaning thereby the months during which the duties are not paid as per the declaration filed which can be considered as contravention to the declaration or the duties not paid on account of no declaration having been filed ....
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....g clarifications in respect of functioning of compounded levy scheme for Gutkha and Pan Masala Units. Issues raised in your letter have been examined and following clarification Is Issued with reference to the provisions as existed prior to amendment made in rules in the Budget 2010. 2. Issue: In case of default during any month of the Financial year whether monthly duty in all the remaining months of the Financial Year would be computed based on the number of operating packing machines declared in the month previous to the month of default or machines found available at any time thereafter, whichever is higher under the proviso 7 of Rule 9 of Pan Masala Packing Machine Rules, 2008. Clarification:- Reading of proviso 7 of Rule 9 of Pan Masala Packing Machine Rules, 2008 makes it clear that the default for payment of duty for one month would not be treated as default for all the remaining part of the full financial year. However, the default would continue till the duty for the said month is paid. Therefore, clarification given by Board vide letter dated 27.07.2009 would be applicable for the Illustration given in your letter. 3. ....