2023 (6) TMI 492

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.... Heading, 1985 in terms of Section 3A of the Central Excise Act and as per Rule 9 of the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 [hereinafter referred to as PPM (CDCD), Rules, 2008] issued under Notification No.30/2008-CE (NT) dated 01.07.2008, the monthly duty payable on the notified goods shall be paid by 5th of the same month and for the month of July, 2008, the same shall be paid on or before 15th day of July, 2008. Since the duty payable for the month of July 2008 was not paid within the due date, the respondent had contravened the provisions of Rule 9 of PPM (CDCD) Rules, 2008. Further, it is also observed that the respondent had continued to operate packing machines for packing Gutkha du....

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....hey 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. 6. None appeared for the Respondent but they filed their written submissions that the matter stands decided in their favour on the basis of the appeals filed by them before this Hon'ble Tribunal vide Final Order No.20048-22050/2015 dated 12.10.2015 which has also been confirmed by the Hon'ble High Court vide CEA No.50/2016 & CEAs No.59-60/2016 dated 18.1.2017. 7. The issue to be decided in the present appeal is whether differential duty has to be paid only during the period of default o....

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....he said 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. 8.3 Board's clarifications are very categorical and clear wherein it is stated that the default would continue till the duty for the said 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. Revenue is bound to follow the Board's clarification as per the decision rendered by Hon'ble Supreme Court in the case of Collector of Central Excise vs. Dhiren Chemical Industries: 2002 (143) ELT 19 (SC). ....

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.... Packing Machines (Capacity Determination And Collection of Duty) Rules , 2008 to certain situations. 12. The matter has been examined. Rule 9 ibid relates to manner of payment of duty and interest under the compounded levy scheme and the main features of the rule are as below:- 13. The duty on notified goods is to be paid by the 5th day of same month. In case of failure in payment of duty by due date (i.e. by 5th), the first proviso provides that the manufacturer shall be liable to pay the outstanding amount along with the interest at the rate specified by the Central Government vide notification under section 11AB of the Act on the outstanding amount, for the period starting with the....

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.... and is sum due to Government. In as much as all provisions of the Central Excise Act, 1944 and the Central Excise Rules, 2002, including those relating to recovery of dues apply mutatis mutandis to Pan Masala Packing Machines (Capacity Determination And Collection of Duty) Rules, 2008, action must be taken immediately to recover the unpaid duty and interest in accordance with provisions of Section 11 of the Central Excise Act read with rule 8(4) of the Central Excise Rules, 2002. 4. As regards the second issue regarding applicability of the seventh proviso to rule 9, ito cases of non-payment of duty, it is informed that this provision is intended to take care of the situation where a manufacturer has failed to....

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....cerely 1 John 2717709 (Vivek Johri) Joint Secretary 4 Document 3 F.No. 81/17/2007- CX3 Government of Indle Ministry of finance Department of Revenue Central Board of Excise and Customs th •Rasuv New Delh April, 2010 23 APR 2010 (99 To The Chief Commissioner of Central Excise, Bangalore. का कार्यालय शुरु Sir, OFFICE OF THE COMMISSIONER BF CENTRAL EXCISE BANGALORE Subject:- Clarification regarding manner of payment of duty under Pan Masala Packing Machine Rules, 2008. Kindly refer to your letter C No.IV/16/319/07 CC (Ex) BZ dated 03.11.2009 on the above subject seeking clarifications ....