Compounded levy scheme cannot apply before its effective date; Tribunal's view that the assessee was not liable was upheld.

The compounded levy scheme under Section 3A of the Central Excise Act applied only from July 2008 and was not in force during the relevant period. As the Revenue relied on a regime that had not yet become operative, the Tribunal correctly held that the assessee could not be proceeded against on that basis. The Supreme Court left that view undisturbed and dismissed the challenge, confirming that a levy scheme cannot govern transactions outside its period of operation.

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Issues: Whether the compounded levy scheme under Section 3A of the Central Excise Act, 1944 was applicable during the relevant period and whether the Tribunal's decision could be faulted on that basis.

Analysis: The compounded levy scheme was introduced only from July 2008. During the relevant period in dispute, the scheme was not in force. Since the legal regime invoked by the Revenue was not then applicable, the Tribunal's view that the assessee could not be proceeded against on that basis was correct.

Conclusion: The challenge failed and the Appeals were dismissed, in favour of the assessee.

Final Conclusion: The decision affirms that a levy scheme cannot be applied retrospectively or outside its period of operation, and the Tribunal's order was left undisturbed.

Ratio Decidendi: A levy scheme introduced with effect from a later date cannot govern transactions occurring when it was not in force.

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