Trade Notice No.10/2010-CE

Dated Shillong, the 11^th May,  2010

Subject: Clarification regarding manner of payment of duty under Pan Masala Packing Machine Rules, 2008. 

Trade, industry and all concerned are informed that clarification in respect of functioning of compounded levy scheme for Guthka and Pan Masala Units . 

2.       It has been stated that when a manufacturer is manufacturing goods of RSP of Rs.2/- and during middle of the month he started manufacturing goods of RSP of Rs.1/- from the same machine and he has paid duty for the said machine at the rate applicable to RSP of Rs.2/-, then the question is whether, in terms of 1^st proviso  to Rule 8 of Pan Masala Packing Machines Rules, 2008 the manufacturer is required to pay duty for an additional machine at the rate applicable to RSP of Rs.1/- also. In this connection provision of proviso 4 to Rule 9 has also been referred. 

            Issue has been examined. A plain reading of first proviso to Rule 8 makes it clear that if a manufacturer commences manufacturing of goods of new RSP during the month on an existing machine, it shall be deemed to be an additional machine. On this interpretation, the manufacturer is required to pay duty on two machines – one machine @ RSP of Rs.2/- and another machine of the RSP of Re.1/-. 

            Further proviso to Rule 9 would not be applicable because the unit has not permanently discontinued manufacturing goods of RSP of Rs.2/-.

(Hemant A Bhat)

 Commissioner 

Authority:-Letter dated 27^th April, 2010

issued by Central Board of Excise and                     

Customs, Department of Revenue,                            

New Delhi, under F.No.81/17/2007-CX3