2016 (2) TMI 718

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..... tion order dated 20.9.2013 passed by the Deputy Commissioner, Central Excise, Division VIII, Delhi. 3. The primary adjudication order confirmed appellant's liability to interest of Rs. 1,64,910/- on account of late remittance of central excise duty by 22 days from July, 2013. This interest component was recovered from the appellant under Section 11AA, by deducting the said amount from the admissible amount of abatement allowed to the appellant. 4. The appellant is a manufacturer of pan masala and chewing tobacco and installed 12 pan masala packing machines. The procedure of installation, operation and remittance of excise duty on the appellant/manufacturer is governed by the Packing Machine (Capacity Determination and Collection of Du .....

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..... ts that in case of increase in the number of operating packing machines in the factory during the month on account of addition or installation of packing machines, the differential duty amount, if any, shall be paid by the 5th day of the following month, On the substratum of this contention, ld. Counsel for the appellant urges that since reinstallation of the packing machines had occurred on 8.7.2013 the liability to remit duty under third proviso to Rule 9 was by 5th August, 2013 and thus there was no liability to interest. 7. Rule 8 obligates a manufacturer to file a declaration in Form 1 serial No.5 of the Form I requires intimation of the number of single track packing machines available in the factory; serial No.6 requires intimation .....

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..... iso thereto states that where it is not feasible to remove such packing machine out of the factory premises, it shall be uninstalled and sealed by the Superintendent of Central Excise in such a manner that it cannot be operated. 8. On true, fair and interactive analysis of the Rules and in particular Rules 6 to 13 the conclusion is irresistible and compelling that where during any period, a manufacturer intimates its intention not to operate a packing machine and the same is sealed by the authorized officers, such machine is deemed have been uninstalled in terms of Rule 6(5). Third proviso to Rule 9 provides that in case of increase in the number of operating packing machines in the factory during the month on account of addition or instal .....

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