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TMI Blog2017 (12) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant is required to pay the duty for the entire month of February, 2012. The fact is not under dispute that the appellant had contravened the provisions of Chewing Tobacco and Unmanufactured Tobacco Packing Machine (Capacity Determination and Collection of Duty) Rules, 2010 - On perusal of Rule 18 ibid, it reveals that the said rule does not provide for confiscation of raw material, packing material of notified/nonnotified goods and un-declared pouch packing machine. Thus, it is evident that under the said rules, the finished goods are only liable for confiscation. The matter should go back to the original authority for quantification of the redemption fine, payable by the appellant on the finished goods - appeal allowed by way of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant was appropriated against such confirmed demand. Besides, penalty of ₹ 3, 56,250/- was imposed under Section 11 AC of the Central Excise Act, 1944. The impugned order has also confiscated the finished goods and raw material, valued at ₹ 4,0 7,220 /- under Rule 18 of the said rules and imposed equal amount of redemption fine on the appellant. The un-declared pouch packing machine was also confiscated, with the option to redeem the same on payment of an amount of ₹ 10,000/-. The impugned order also confirms the interest in terms of Section 11 AA ibid. 3. The Ld. Advocate appearing for the appellant submitted that the undeclared pouch packing machine was purchased by the appellant on 26/02/2012 and insta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Machine, Faridabad and was installed in the factory of the appellant on 27.02.2012. Thus, the machine was used only for two days in manufacturing the notified goods. As per the 8th proviso appended to Rule 9 of the said rules, the duty payable shall be calculated on pro-rata basis of the total number of days remaining in that month, starting from the date of such commencement of production. However, the adjudicating authority by placing reliance on Rule 7 of the rules, has held that the appellant is required to pay the duty for the entire month of February, 2012. I find that in an identical case, this Tribunal in the case of Trimurti Fragrance Pvt. Ltd. (supra) has held that the duty cannot be charged for the whole month and it shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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