Case Law Details
Commissioner of Central Excise & ST Vs Vishnu Packaging (CESTAT Ahmedabad)
CESTAT Ahmedabad held that refund under rule 16 of Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 allowable on account of change in constitution of firm into a private limited company.
Facts- The respondent is a manufacturer of Pan Masala, falling under Chapter 24 of the Central Excise Tariff Act, 1985, and are working under compounded levy scheme, according to which respondent have to pay the duty on number of pouch packing machines, installed and working during the month as governed under Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008. The respondent had paid duty amounting to Rs. 11,25,00,000/- for the month of June 2011 for the goods viz ‘Pan Masala Containing Tobacco (Gutkha)’ having a maximum retail price of Rs. 2/- per pouch and Rs. 5 per pouch in respect of 25 pouch packing machines. As the respondents were working under a compounded levy scheme, they were required to pay the duty on number of pouch packing machines (PPMs), installed and working during the month.
The respondent was required to pay a total duty of Rs. 11,25,00,000/- for all 25PPMs installed and in working condition in their factory during June 2011. Accordingly, they have paid central excise duty of Rs. 11,25,00,000/- in June 2011.
The respondent thereafter filed a refund claim amounting to Rs. 2,25,00,000/- online before the Jurisdictional Assistant Commissioner for the amount of duty paid in respect of 25 pouch packing machines, which were closed and sealed during the period from 25.06.2001 to 30.06.2011 i.e. for 6 days. The refund sanctioning authority sanctioned the refund claim to the respondent under Rule 16 of Pan Masala Packing Machine (Capacity Determination and Collection of Duty) Rules, 2008 read with Section 11B of the Central Excise Act 1944.
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