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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (8) TMI AT This

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2016 (8) TMI 344 - AT - Central Excise


Issues involved:
Calculation of Central Excise duty for a manufacturing unit lying closed for part of the month and in operation for the rest of the month under the Pan Masala Packing Machine Rules 2008.

Analysis:
The case involved a dispute regarding the payment of Central Excise duty by a Pan Masala manufacturing unit for a month where the factory was closed for a certain period. The appellant contended that they should pay duty on a pro-rata basis for the days the factory was operational, as per the Pan Masala Packing Machine Rules 2008. The appellant had applied for abatement for the days the factory was closed and had received approval for the same from the Assistant Commissioner.

The dispute arose when the department demanded additional duty for the period the factory was operational, arguing that duty should be paid for the entire month for certain manufacturing activities. The department issued a show cause notice demanding the short-paid duty, interest, and penalties under various sections of the Central Excise Act and related rules.

The Commissioner, in the Order-in-Original, upheld the demand for duty, interest, and penalties. The appellant challenged this decision before the Tribunal, arguing that they were entitled to pay duty on a pro-rata basis as per the Pan Masala Packing Machine Rules 2008. The appellant cited relevant provisions of the rules to support their argument.

The Tribunal, after considering the arguments of both parties, referred to a previous decision in a similar case and a judgment of the Delhi High Court. The Tribunal held that the appellant was entitled to pay duty on a pro-rata basis for the days the factory was operational, as per the provisions of the Pan Masala Packing Machine Rules 2008. The Tribunal set aside the impugned order, allowing the appeal in favor of the appellant and granting consequential benefits.

 

 

 

 

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