Full Excise Duty not Demandable for Period of Non Operation of Machines: CESTAT rules in favour of Gutka Manufacturer

The CESTAT ruled that excise duty cannot be demanded for the period during which manufacturing machines were not in operation. The case involved a manufacturer of gutka products, who had suspended operations temporarily. The Tribunal found that excise duty cannot be levied during periods of non-operation, as the liability arises only when goods are manufactured. This decision provides relief to manufacturers by clarifying that excise duty obligations are tied to the actual production of goods, rather than the mere existence of the manufacturing capacity.