9911796707
TMI Blog2012 (11) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... were manufacturing Pan Masala containing tobacco known as Gutka with two Retail Sale Prices namely, Rs. 1.00 per pouch and Rs. 0.50 per Pouch. They were paying duty based on the capacity of packing machines installed in their factory as determined under Pan Masala Packaging Machines (Capacity Determination and Collection of Duty) Rules, 2008. The dispute involved in this case is the duty liability for one period of Aug., 08 and Sep., 08 and another period of Oct., 2008 and Nov., 2008. 3. Rule 5 and Rule 8 of the said Rules are reproduced below : "5. Quantity deemed to be produced. - The quantity of notified goods, having retail sale price as specified in column (2) of the Table below, deemed to be produced by use of one operati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e price during the month on an existing machine, it shall be deemed to be an addition in the number of operating packing machine for the month : Provided further that in case of non-working of any installed packing machine during the month, for any reason whatsoever, the same shall be deemed to be operating packing machine for the month." 4. The Appellants had declared that during Aug., 08 they had two packing machines in operation and during Sep., 08 they had one packing machine in operation. This is not disputed. If these machines are assumed to be manufacturing Pan Masala of only one RSP then the duty liability worked out to Rs. 25,00,000/- for Aug., 08 and Rs. 12,50,000/- for Sep., 08. This is also not in dispute. The position th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions in first proviso of Rule 8 applied only when Pan Masala of two different RSPs falling in two different slabs as indicated in the said table were manufactured. They also contest that the provisions of Rule 8 is applicable only when the assessee starts manufacturing Pan Masala of a new RSP in the month concerned. They had declared in July 2008 that they were manufacturing the two types of Pan Masala and there is no ground to invoke provisions of first proviso to Rule 8 after having initially assessed the capacity of production considering that Pan Masala of one type only is manufactured by them. 7. The ld. AR for Revenue submits that as per provisions in the first proviso of Rule 8, if Pan Masala of two different RSPs are man ..... X X X X Extracts X X X X X X X X Extracts X X X X
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