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TMI Blog2015 (10) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise and Customs Board has also issued a circular dated 24.1.2014 clarifying that the duty payable under the notification dated 1.7.2008 is determined on deemed production with respect to the number of operating packing machines in the factory and not on the basis of the actual production by a unit. - In the light of the specific finding given by the Tribunal, being the last fact finding authority, to the effect that the machine purchased by the assessee is a single track machine, the duty payable by the assessee on the basis of a single track machine, should have been levied. The Commissioner fell in error in treating the said machine as a two track machine. The order of the Commissioner was rightly set aside by the Tribunal. - no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 dated 01.07.2008. Thereafter, the assessee started production and since then is paying the rate of duty. On 15.7.2010, the Central Excise Officer visited the factory premises and found that 150 pouches of Pan Masala was being produced from this machine and formed an opinion that this Machine should be treated as a Double Track Machine under the PMPM Rules. Accordingly, a show cause notice was issued. The assessee submitted a reply and thereafter, the Commissioner passed an order in original dated 31.1.2012 assessing the rate of duty treating the machine as a Double Track Machine. The Commissioner also imposed penalty. The assessee, being aggrieved, filed an appeal before the Custom Excise and Service Tax Appellate Tribunal, which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 5 of the PMPM Rules is extracted herein: [RULES 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 operating packing machine, having maximum packing speed at which it can be operated for packing of notified goods as specified in column(3) or column (4) or column(5) of the Table below, as the case may be, per month shall be as is equal to the corresponding entry specified in column (3) or column (4) or column(5) of the said Table, as the case may be. Number of pouches per operating packing macnhine per month Sl. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 10108800 22464000 For the purposes of this rule, if there are multiple track or multiple line packing machine which besides packing the notified goods in pouches, perform additional processes involving moulding and giving a definite shape to such pouches with a view to distinguish the brand or to prevent the counterfeiting of the goods, etc. Two such tracks or lines hsall be deemed to be one individual packing machine for the purposes of calculation of the number of pouches per operating packing machine per month: Provided that in case of multiple track or multiple line packing machine which are incapable of performing such additional processes, one such track or line shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee would be treated as a single track machine and would not be treated as a multiple track machine. Having heard Shri B.K.S Raghuvanshi, the learned counsel appearing for the appellant and Shri Kasif Zaidi, the learned counsel for the assessee, we find that Rule 5 of the PMPM Rules only distinguishes between a single track and multiple track machines and the duty is paid accordingly. Duty is not paid on the basis of number of pouches produced per minute per month. As per the notification dated 1.7.2008, the rate of duty has been fixed per packing machine per month and not on the turnover of the pouches manufactured. The Central Excise and Customs Board has also issued a circular dated 24.1.2014 clarifying that the duty payable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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