Compounded levy for aluminium circles linked duty to machine capacity, not finished-circle diameter, making refund claims untenable.

Under the compounded levy scheme for aluminium circles, the duty rate was linked to the production capacity of the cold rolling machine, not to the diameter of the finished circles. The clarification and amendment treated the relevant size reference as the machine's roller length or width, because the maximum diameter of circles producible depended on that machine dimension. On that basis, differential duty was correctly demanded where duty had been paid on an incorrect basis, and a refund claim for the differential amount was not sustainable.

---

---

Issues: Whether, under the compounded levy scheme for aluminium circles, the duty rate was to be determined with reference to the machine width or roller length rather than the diameter of the finished circles, and whether the assessee was entitled to refund of the differential duty paid.

Analysis: The duty scheme introduced by Notification No. 33/97, read with the earlier notification as amended, fixed rates on the basis of the size of the cold rolling machine. The Board's clarification explained that the reference to size concerned the rolling machine and that the maximum diameter of circles producible depended on the roller length or width of the machine. The clarification and the amendment made the basis of assessment clear, namely that the levy was linked to the production capacity of the machine and not to the diameter of the circles manufactured. In that view, the differential duty was correctly demanded and the refund claim was untenable.

Conclusion: The refund claim was not sustainable and the rejection of refund was ; the assessee failed on the issue.

---