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TMI Blog2015 (3) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... 99 10 of Central Excise Tariff Act, 1985. During the course of scrutiny of Form-2 (revised) for the month of September, 2011 filed by the appellant under Rule 9 of Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010, it was observed that the appellant had packed manufactured branded chewing tobacco with the help of 2 packing machines during the said period. In accordance with Rule 6(4) read with Rule 8 of Packing Machine Rules, 2010, there were 2 operating packing machines installed in the factory premises of the appellant during the month. The Central Excise duty as prescribed vide Notification No. 16/2010-C.E., dated 27-2-2010 as amended by vide Notification No. 19/2010-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th one single tract (without lime) packing machine (First Machine) for packing pouches of RSP of Rs. 2.00 was operative for the period 1-9-2011 to 30-9-2011, therefore, the abatement claim for Rs. 7,12,500/- for non-operation of second machine during 1-9-2011 to 15-9-2011 was not admissible as appellant has not fulfilled the condition of "completely stopping the manufacturing" activity, because their machine remained operative during the said period. Accordingly, a show cause notice dated 14-12-2011 was issued to the appellant as to why their abatement claim of Rs. 7,12,500/- which was not in agreement with provisions of the relevant rules should not be rejected. Subsequently, vide the impugned Order-in-Original, the claim of abatement of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portionate basis shall be abated in respect of such period provided the manufacturer of such goods files an intimation to this effect with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, at least seven days prior to the commencement of said period, who on receipt of such intimation shall direct for sealing of all the packing machines available in the factory for the said period under the physical supervision of Superintendent of Central Excise, in the manner that these cannot be operated during the said period : Provided that during such period, no manufacturing activity, whatsoever, in respect of notified goods shall be und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the language of Rule 10 it is clear that for claiming abatement under Rule 10, there must be total stoppage of the machines which have to be sealed in such a manner that same cannot be operated and besides this, there should be no clearances of any specified goods during the period of stoppage of production for which abatement has been claimed. From the objectives of notifying the goods for assessment and collection of duty based on capacity of production, as mentioned in Section 3A(1) of the Central Excise Act, 1944 and from perusal of the Rules framed under Section 3A(1), it is clear that these rules have been framed keeping in view the widespread duty evasion by Pan Masala/Gutka manufacturers and the provisions of various rules of Pan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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