TaxTMI 
TaxTMI 
2023 (8) TMI 422
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....matter of record that appellant had filed declaration on 26.04.2010 under Rule 6 of Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 requesting to allow two machines bearing No. 'Bhavya-01/Suresh' and 'Bhavya-02/Suresh' for manufacturing of branded and unmanufactured tobacco without lime tube appearing brand name of 'Suresh Tamaku'. 2.2 The appellant on 12.05.2010 applied to the department for sealing of their one machine 'Bhavya-01/Suresh' with effect from 15.05.2010. The jurisdictional range officer working on the request of the appellant sealed the machine bearing No. 'Bhavya-01/Suresh' on the mid-night of 14.05.2010. 2.3 The dispute in this case arose when the appellant filed claim of abatement in the form of refund vide his letter dated 01.06.2010 in terms of Rule of 10 of the said Rules, 2010 which were notified vide Notification No. 11/2010-CE (NT) dated 27.02.2010 on account of non-production of notified goods i.e. branded and unmanufactured without lime tube for the continues period for 17 days i.e. 15.05.2010 to 31.05.2010 thus the amount of Rs. 4,66,129/- was demanded by the appellant as refund of d....
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....ty) Rules, 2010 and Appellants are not allowed to abate the duty calculated on a proportionate basis for 17 days in respect of such period." 3. Learned Chartered Accountant appearing for the appellant has contended that a close scrutiny of Rule 10 of the said Rules, 2010, if are made applicable prudently it clearly reveals that manufacturer is required to give an intimation to the proper Central Excise officer at least three working days prior to the commencement of the period for non functioning of the packing machines, intended to be sealed by the authorities so that the manufacturer is not able to run such machine. It is matter of record that out of two machines one machine was not in operation and this machine was sealed. It is further pressed that it was never the legislative intent that all the machines working need to be sealed and in case there is breakdown of a particular machine only that is to be sealed. The learned Advocate has relied upon several decisions of this Tribunal as well as High Courts with regard to above mentioned issue:- (a) ACME Industries v. CCE (2011) 2 TMI 611 (Tri. New Delhi) (b) Paradise Steels P. Limited v. CCE (2018 9 TMI 1480 (Tri. New Delhi)....
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....s the differential duty is paid by the 5th day of the following month and in case the amount of duty so recalculated is less than the duty paid for the month, the balance shall be refunded to the manufacturer by the 20th day of the following month : Provided also that if there is revision in the rate of duty leviable under section 3A of the Act, the monthly duty payable shall be recalculated on the pro-rata basis of the total number of days in that month and the number of days remaining in that month counting from the date of such revision and the duty liability for the month shall not be discharged unless the differential duty is paid by the 5th day of the following month and in case the amount of duty so recalculated is less than the duty paid for the month, the balance shall be refunded to the manufacturer by the 20th day of the following month : Provided also that in case it is found that a manufacturer has manufactured goods of those retail sale prices, which have not been declared by him in accordance with provisions of these rules or has manufactured goods in contravention of his declaration regarding the plan or details of the part or section of the factory premises int....
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....urer of Chewing Tobacco and Unmanufactured Tobacco, as per the said Rules, 2010, require to pay compounded Central Excise duty for the period from which the machines are in operation in a particular month. Abatement of Central Excise duty is restricted to the situation where the provisions of the notified goods does not take place for the period 15 days or more. We find that in this case, since the one of the machines of the manufacturer was not engaged in the manufacture of notified goods for more than 15 days and therefore, we are of the clear view that they are entitled for abatement of the duty which has been deposited by them in advance in the beginning of the month. 7. We also take note of CBEC Circular No. 980/04/2014-CE dated 24 Jan 2014:- "3. Presently, the mandatory compounded levy scheme is applicable to Pan Masala, Gutkha and chewing tobacco manufactured with the aid of packing machine & packed in pouches. The factor relevant to the production on which excise duty is leviable has been notified to be the number of packing machines in the factory of the manufacturer under the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 and th....