2017 (12) TMI 1079 - AT - Central Excise

Liability of interest - whether the appellant is liable to pay interest for alleged late payment of duty under the fact that the packing machines were lying uninstalled and had been reinstalled after 5th of June and the duty for the month of June had been paid on 24th June, 2015, under the provisions of Chewing Tobacco & Unmanufactured Tobacco Packing Machines (Capacity Determination & Collection of Duty) Rules, 2010? Held that - the appellant is not liable to pay any interest for deposit of duty on 24/06/2015, under the admitted fact that the machine was uninstalled/closed from 1st June, 2015 to 19th June, 2015, and under such facts, it amounts to addition of a machine and the due date for payment of duty is 5th of the next month - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Whether appellant is liable to pay interest for alleged late payment of duty under CTUT Packing Machines Rules, 2010.

Analysis:
The appellant filed an abatement claim before the Assistant Commissioner, stating that their packing machine was not used for the production of finished goods for 19 days in June 2015. The Assistant Commissioner granted abatement for the said period but also held the appellant liable to pay interest for delayed duty payment. The appellant contested this decision before the Commissioner (Appeals), arguing against the reduction of abatement and the imposition of interest. However, the Commissioner (Appeals) upheld the Assistant Commissioner's order.

In the appeal before the Tribunal, the appellant relied on a previous ruling in the case of Trimurti Fragrances Pvt. Ltd. where a similar issue was decided in their favor. The Tribunal noted that the issue in the present case was covered by the precedent ruling and held that the appellant was not liable to pay interest for depositing duty on 24/06/2015. The Tribunal emphasized that since the machine was uninstalled/closed from 1st June, 2015 to 19th June, 2015, the duty payment date was considered as the 5th of the next month. The Tribunal directed the Assistant Commissioner to grant the refund along with interest within 30 days from the date of the order.

Therefore, the Tribunal allowed the appeal, providing consequential benefits to the appellant in accordance with the law. The judgment clarified the application of CTUT Packing Machines Rules, 2010 in determining duty payment dates and interest liabilities in cases where machines are uninstalled or closed for a specific period, aligning with the principles established in previous rulings.