Trade Notice No.09/2010-CE
Dated Shillong, the 11th May, 2010
Trade, industry and all concerned are informed that clarification in respect of functioning of compounded levy scheme for Guthka and Pan Masala Units. Following clarification is issued with reference to the provisions as existed prior to amendment made in rules in the Budget 2010.
2. Issue: In case of default during any month of the Financial year whether monthly duty in all the remaining months of the Financial Year would be computed based on the number of operating packing machines declared in the month previous to the month of default or machines found available at any time thereafter, whichever is higher under the proviso 7 of Rule 9 of Pan Masala Packing Machine Rules, 2008.
Clarification:-Reading of proviso 7 of Rule 9 of Pan Masala Packing Machine Rules, 2008 makes it clear that the default for payment of duty for one month would not be treated as default for all the remaining part of the full financial year. However, the default would continue till the duty for the said month is paid. Therefore, clarification given by Board vide letter dated 27.07.2009 would be applicable for the illustration given in your letter.
3. Issue- Under Proviso 7 of Rule 9 of Pan Masala Packing Machine Rules, 2008 whether total number of packing machines found available in the premises would also include machines which have been sealed by the officers in the said premises.
Clarification:- Total number of packing machines found available has to be interpreted as to mean packing machines found available for production. Therefore the machines which have been sealed by the department would not be considered as the machine available in the factory for the purpose of payment of duty.
(Hemant A Bhat)
Authority:-Letter dated 27th April, 2010
issued by Central Board of Excise and
Customs, Department of Revenue,
New Delhi, under F.No.81/17/2007-CX3