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2018 (9) TMI 15 - AT - Central ExciseShort payment of Duty - Manufacture of Pan Masala containing Tobacco - Revenue contended that the respondent short paid Central Excise duty of ₹ 41,93,548/- for the month of March, 2011 - Held that - Revenue did not contend that the finding of this Tribunal have been set aside by any Higher Appellate Authority - reliance placed in the case of M/s Thakkar Tobacco Products Pvt. Ltd., M/s Vishnu Pouch Packaging Pvt. Ltd. Vs CCE, Ahmedabad 2015 (2) TMI 606 - CESTAT AHMEDABAD , where it was held that in case of such adjustment of duty which is mandatorily required be abated, Revenue cannot insist upon recovery of amount so adjusted - appeal dismissed - decided against Revenue.
Issues:
- Short payment of Central Excise duty for the month of March 2011 Analysis: The appeal before the Appellate Tribunal CESTAT ALLAHABAD arose from an Order-in-Appeal passed by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Allahabad. The case involved the respondent, a manufacturer of Pan Masala containing tobacco, operating under the Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008. The appellant contended that the respondent had short paid Central Excise duty of &8377; 41,93,548/- for the month of March 2011. However, the learned Commissioner (Appeals) referred to a previous decision by the Tribunal in a similar case and held that in situations where a factory remained closed for 15 days or more after payment of duty for a particular month, the amount of abatement under Rule 10 could be adjusted for the subsequent month. The Commissioner (Appeals) set aside the order of the Original Authority, confirming the demand and imposing penalty. In its analysis, the Appellate Tribunal noted that the Revenue did not challenge the previous Tribunal's decision cited by the Commissioner (Appeals). Relying on the precedent set by the earlier case, the Tribunal concluded that there was no flaw in the impugned order. Consequently, the appeal filed by the revenue was dismissed. The Tribunal's decision was based on the consistent approach taken in various judicial pronouncements, supporting the adjustment of duty as mandated under the rules, and rejecting the Revenue's insistence on recovering the adjusted amount separately.
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