TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 1370
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....e days the machine was sealed and not in operation. The details are given in the following chart. Sr. No. Details August, 2011 November, 2011 December, 2011 March, 2012 (upto 16-3-2012) March, 2012 (From 17-3-2012) April, 2012 1 Date of Intimation for opening Seal 28-7-2011 4-11-2011 13-12-2011 - 17-3-2012 11-4-2012 2 PPM opened to operated From - To 16-8-2011 to 30-8-2011 18-11-2011 to 25-11-2011 26-12-2011 to 30-12-2011 Not operated (upto 16-3-2012) 22-3-2012 to 25-3-2012 15-4-2012 to 17-4-2012 3 No of days PPM machine operated 15 8 5 - 4 3 4 PPM Re-Sealed Date 30-8-2011 25-11-2011 30-12-2011 - 25-3-2012 17-4-2012 5 Duty payable for the whole month 12,50,000 12,50,000 12,50,000 12,50,000 19,00,000 19,00,000 6 Duty payable per day 40,322 41,667 40,322 40,322 63,333 63,333 7 Duty paid for days PPM operated 6,04,839 3,33,333 2,01,613 - 2,45,161 1,90,219 8 Differential duty demanded 6,45,161 9,16,667 10,48,387 6,45,161 6,74,194 17,09,781 9 Abatement availed suo motu 6,45,161 9,16,667 10,48,387 6,45,165 9,19,355 17,09,781 1.3 Revenue observed that during August, 2011, November, 2011, Decembe....
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.... followed the procedure for taking abatement of duty provided under Rule 10 of "Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008" which is reproduced below :- "10. Abatement in case of non-production of goods. - In case a factory did not produce the notified goods during any continuous period of fifteen days or more, the duty calculated on a proportionate basis shall be abated in respect of such period provided the manufacturer of such goods files an intimation to this effect with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, at least seven days prior to the commencement of said period, who on receipt of such intimation shall direct for sealing of all the packing machines available in the factory for the said period under the physical supervision of Superintendent of Central Excise, in the manner that these cannot be operated during the said period : Provided that during such period, no manufacturing activity, whatsoever, in respect of notified goods shall be undertaken and no removal of goods shall be effected by the ....
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....mounts to refund and, therefore, the procedure for availing refund as laid down under section 11B of the Act is required to be followed. In this regard, it may be noted that the expression "abatement" has not been defined anywhere in the Act or in the PMPM Rules. Therefore, the popular or dictionary meaning of the said expression is required to be looked into. In Black's Law Dictionary, the term "abatement" has been defined as a reduction, a decrease, or a diminution; the suspension or cessation, in whole or in part, of a continuing charge, such as rent. In the context of tax, abatement has been stated to be diminution or decrease in the amount of tax imposed. In the New Oxford Dictionary of English, "abatement" has been defined as the ending, reduction or lessening of something. In the Dictionary of English Language, "abatement" has been defined as an amount abated, a deduction from the full amount of tax. On the other hand, "refund" has been defined as to pay back "money" to give or to put back. Tax abatement is ordinarily known as reduction of or exemption from tax by a Government for a specific period. A tax incentive is also stated to be a form of tax abatement. Thus, the ordi....
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....same says that in terms of Rule 10 of the PMPM Rules, the abatement of duty is to be given in case the factory did not produce notified goods during any continuous period of fifteen days or more. The JDA/JAC has to pass an abatement order in the case. The circular further says that representations have been received from field formations regarding whether the abatement orders need to be subjected to pre- and post-audit in the same manner as refund/rebate orders. Thus, the subject matter of the said circular is as to whether abatement orders need to be subjected to pre- and post-audit. The circular further says that circulars have been issued in the context of procedure to sanction pre/post-audit of refund/rebate claims and as the abatement order is in the nature of refund, they are required to be subjected to the same administrative procedure of pre- and post-audit as laid down by the Board from time to time regarding refund. Accordingly, it has been provided that all Board circulars issued in the context of pre- and post-audit of refund/rebate claims will apply mutatis mutandis to the abatement orders also. 11. Thus, the said circular proceeds on the footing that abatement ....
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....missioner of Central Excise of such amount as may be specified in such order subject to the fulfilment of the conditions laid down thereunder. Thus, in relation to independent processors of textile fabrics, manufacturers of non-alloy steel hot re-rolled products and manufacturers of non-alloy steel ingots, who were also assessed on the basis of annual production capacity under section 3A of the Act, there was an express provision for making an order of abatement whereas the PMPM Rules are totally silent in that regard. There is no provision for making an order of abatement under Rule 10 of the PMPM Rules. 13. As noticed earlier, Rule 10 of the PMPM Rules provides for abatement of duty calculated on proportionate basis in case where the factory does not produce notified goods during any continuous period of fifteen days or more. However, such abatement is subject to the conditions stipulated thereunder as referred to hereinabove. Once such conditions are satisfied, the assessee becomes entitled to abatement of duty to the extent of the days the factory did not produce the notified goods. 14. On a plain reading of Rule 10 of the PMPM Rules, it is apparent that while the....
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.... cannot be said that the view adopted by the Tribunal is not a plausible view warranting interference by this Court. In the absence of any infirmity in the impugned order passed by the Tribunal, it is not possible to state that the same gives rise to any question of law, much less, a substantial question of law. The appeals, therefore, fail and are accordingly dismissed." In the case of CCE, Delhi-I v. Shakti Fragrances Pvt. Ltd. Unit-II - 2015 (324) E.L.T. 390 (Del.), the Hon'ble Delhi high Court also considered the similar issue and passed the following judgment : "11. In the present case, the appellant had pressed into service Rule 10 of the PMPM Rules requires the duty calculated on a proportional basis to be abated in case the factory does not produce the notified goods during any continuous period of 15 days in a month. Rule 10 further requires the intimation to that effect to be given to the authorities at least three working days prior to the commencement of the period of closure. Rule 9 requires the monthly duty payable to the authorities to be paid by the fifth day of the same month. There is nothing in Rule 9 to suggest that the failure to pay the duty payable on....