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TMI Blog2010 (5) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... retail sale price of pouch weighing 1.8 gms. was Rs. 1.50, it is needless to say that pouch weighing 2 gms. ought to carry retail sale price of more than Rs. 2.01 per pouch in the absence of any material placed on record by the assessee disclosing its price to be at Rs. 1.50 - financial hardship and revenue interest, we consider it proper to waive 40% of the duty amount - interest and the penalty waived - E/2354/2009 - 371/2010-EX(PB) - Dated:- 14-5-2010 - Justice R.M.S. Khandeparkar, President and Shri Rakesh Kumar, Member (T) REPRESENTED BY : S/Shri C. Hari Shanker, with S. Sunil Kumar, Advocates, for the Appellant. Shri Anil Khanna, DR, for the Respondent. [Order per : Justice R.M.S. Khandeparkar, President]. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 7th July, 2008 came to be issued in relation to the period between 2-1-2008 to 31-1-2008 demanding the duty of Rs. 4,06,45,161/- along with interest thereon which was confirmed by the impugned order along with penalty of Rs. 40 lakhs. The controversy in the matter relates to the claim of the appellants for claim of benefit under notification No. 38/2007-C.E., dated 19-12-2007. 5. The notification in question provides that the excisable goods i.e. Panmasala falling under Tariff Item 2106.90.20 and the Panmasala containing tobacco commonly known as Gutkha falling under Tariff Item 2403.99.90 of the Schedule to the Central Excise Tariff Act, 1985, subject to the process of filling and packing in pouches with the aid of pouch filling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions mentioned thereunder are followed. 7. Considering the said notification and the fact that the appellants had opted to work under the said notification and they were required to follow the procedure and conditions of the said notification, they were required to manufacture Gutkha of RSP not exceeding Rs. 1.50 per pouch as they had opted to pay Compounded Levy of Rs. 12 lakh per machine per month and as it was established that they had been manufacturing Gutkha pouches containing 2 gms. of Gutkha in each pouch worth more than Rs. 2, therefore, were required to pay Rs. 26 lakhs per machine per month, and hence there was short payment of Rs. 4,06,45,161/- for the month of January, 2008. The said duty demand was confirmed agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured in the premises which is governed by the Compounded Levy Scheme under the said notification, it cannot be said that the appellants would not pay the charges in accordance with the table prescribed under the said notification. 10. As already seen above, the notification clearly prescribes the rate of duty with reference to retail sale price for each pouch. The condition (i) of the said notification clearly requires the manufacturer to give details of the packing machine installed in the factory. Table in the notification clearly prescribes various slabs of rate of duty for each packing machine per month depending upon the retail sale price per pouch. Since records disclose that the appellants were manufacturing Gutkha p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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