The Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad ruled that the taxpayer can claim abatement without excise duty payment under rule 10 of Pan Masala Packaging Machines (Capacity Determination and Collection of Duty) Rules, 2008.
The bench found that from the record it is not in dispute that the appellant have scrupulously followed the procedure for sealing and desealing of the machines under the supervision of the departmental officer and claim the abatement only for the period when the machine was under closure.
The tribunal observed that the only contention of the department is that the appellant should have first paid the excise duty for the entire period and thereafter, they should have claimed the abatement in respect of the proportionate duty attributed to the period when the machine was under closure.
The bench said that this very issue has been considered time and again in various decisions by the Tribunal and held that there is no need to first pay the duty and thereafter claim the abatement. The Tribunal considering Rule10 of the Pan Masala Packaging Machine (Capacity Determination and Collection of Duty) Rules, 2008 held that the claiming the abatement without paying the duty for the period when the machine was under closure is in order, therefore, on this account the demand is not sustainable.
The bench held that in view of the catena of judgments the issue is no longer res-integra and the appellant are entitled for the abatement even without first payment of the duty for the period of closure of machine.
Facts
The issue involved in the case is that whether the appellant is liable to pay the service tax for the entire period and thereafter should claim the abatement of the duty attributed to the period when the machine was sealed as contended by the Revenue or whether the appellant can claim the abatement without payment of duty for the said period, as claimed by the appellant.
N. K. Tiwari, Counsel appearing on behalf of the appellant, submitted that the issue is no longer res-integra as in the various judgments it was held that it is not necessary that the assessee should first pay the duty and thereafter, claim the abatement by way of filing refund claim during the period when the machine was inoperative and sealed. In those judgments, it was categorically held that in terms of Rule 10 of the Pan Masala Packaging Machines (Capacity Determination and Collection of Duty) Rules, 2008, the appellant can claim the abatement without first payment of duty.
Case Details
Case Name: Urmin Marketting P Ltd v/s Commissioner Of CGST & Central Excise
Citation: Excise Appeal No. 12619 of 2018 – DB
Counsel for Petitioner : Shri N K Tiwari, Consultant
Counsel for Respondent : Shri Tara Prakash, Deputy Commissioner (AR)&Shri A K Samota, Superintendent (AR)
Court: CESTAT, Ahmedabad
Judge: Ramesh Nair Member (Judicial) and Mr. MR. C L Mahar Member (Technical)
Decision Date: 08/08/2024
