DINESH FRAGRANCE Vs. UNION OF INDIA AND ORS.

JUDGEMENT

(1.) This petition for writ is preferred to challenge the order dated 16.3.2015 passed by the Assistant Commissioner, Central Excise Division, Jodhpur determining a sum of Rs. 231.47 Lacs per month as multiple duty payable by the petitioner on 'Sada Pan Masala'.

(2.) The factual matrix necessary to be noticed is that while exercising powers conferred by sub -section (2) & (3) of Sec. 3A of the Central Excise Act, 1944, the Central Government framed the Rules in the name of "Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008". The Rules aforesaid came into force on 01.7.2008. The Rules of 2008 are having application to Pan Masala and Pan Masala containing tobacco, commonly known as 'Gutkha'. As per Rule 4, the factor relevant for production of notified goods shall be the number of packing machines in the factory of the manufacturer. Rule 5 of the Rules of 2008 provides a mode for determination of tax liability and according to that, the quantity of notified goods having retail sale price, as specified in Column (2) of the table given, shall be deemed to be produced by use of one operating packing machine per month. For ready reference, the Table prescribed is quoted below: -

(3.) According to Rule 6, a manufacturer of notified goods, which is 'Sada Pan Masala' in the instant matter, on coming into force of the Rules of 2008 shall declare name on each of the packing machine, its identification number, date of its purchase and the maximum packing speed at which they can be operated for packing of notified goods of various retail sale price.