TaxTMI 
TaxTMI 
2023 (6) TMI 235
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....at the respondent is engaged in the manufacturer 'super gem' and 'siddu' brands of Pan Masala commonly known as Gutkha falling under Chapter Subheading 2403 9990 of First Schedule to erstwhile Central Excise Tariff Act, 1985, which were subject to duty under Section 3 of the Central Excise Act, 1944 and on the basis of Retail Sale Price (RSP) under Section 4A of the erstwhile Central Excise Act, 1944. 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 decla....
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....ty is not bound by these clarifications provided by the board. They stated that the adjudicating authority had wrongly interpreted the proviso and demanded differential duty only for the months of default instead of demanding duty for the entire financial Year by considering the highest number of machines operated. 5. Shri B. Venugopal, learned advocate appeared on behalf of the respondents and submits that the learned Commissioner had correctly dealt with the redetermination of differential duty by considering the number of 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, which is in accordance with law. ....
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....ver 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 pay the duty payable by the due date, and continues to operate any packing machine, then till the time such non-payment continues, he shall be liable to pay the mont....
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....d month is paid". Hence, in the instant case, the learned Commissioner has rightly demanded the differential duty along with interest for the available packing machines during the period of default. 7.4 We find that in the case of S.M. Perfumes vs. CCE, the Hon'ble High Court of Karnataka at Bangalore vide its CEA No.50/2016 & CEAs No.59 - 60/2016 dated 18.1.2017 has considered these Rules and relevant provisos and has rejected the Revenue's plea that the 7th Proviso would operate independently for the whole year. 7.5 Hon'ble High Court of Karnataka has upheld the findings of the Tribunal in para 8 of the order, which is reproduced herein below: "8. Whereas, 7th proviso further provides that whether the duty was payable but is not paid ....