9911796707
TMI Blog2015 (9) TMI 1557X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are that the appellant is engaged in the manufacture of Pan Masala containing tobacco commonly known as gutka. The appellant were paying duty under compounded levy scheme as per Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008. On examining the records for the month of March, 2011, Feb.2012, March, 2012, May 2012 and June 2012, it has been noticed that the appellant have paid central excise duty on prorata basis or for the period of production/manufacturing of the said goods, during the last days of the month, or in the following month, therefore, the applicant has contravened the provisions of PMPM Rules, 2008 and consequently, the demand was calculated as under:- Month No.of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods files an intimation to that effect with the concerned authorities. In this case, it is not disputed that the appellant has intimated in advance and their machines were not working more than 15 days continuous period during the impugned period. As per the Rule 7 of the said Rules, duty is payable in advance on 5th day of the same month but in this case, on 5th day of the same month, machines were lying sealed by the department and no production on those machines have been done. Therefore, as per Rule 10 of the said Rules, the appellant is entitled to pay duty on proprata basis. Therefore, the impugned demands are not sustainable. 5. To support her contention, she relies on the decision of the Hon'ble High Court of Delhi in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aji Steel Pvt. Ltd. Vs. CCE, Coimbatore reported in 2009 (246) ELT 255 (Tribunal-Chennai) and in the case of Steel Industries of Hindustan reported in 2013 (293) ELT 191 (Allahabad), wherein the Honble High Court held that claiming the abatement for closure period depositing the duty for the whole month was not a pre-condition under Rule 96ZB of the Central Excise Rules, 1944. Therefore, we hold that the appellant has paid duty correctly but they are liable to pay interest for the period from the due date to the date they adjusted duty chargeable was paid. With these terms, the appeal filed by M/s. Sompan Product Pvt. Ltd. is disposed of. We also hold that in such a situation no penalties are leviable on the appellants. Accordingly, penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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