Actual production basis under compound levy scheme must be examined before rejecting duty re-determination requests.

Section 3A(4) of the Central Excise Act, 1944 permits re-determination of duty liability on the basis of actual production under the compound levy scheme. A request for such re-determination could not be rejected solely because the assessee was under BIFR; the competent authority had to examine the evidence and production data placed on record. The matter was therefore required to be sent back for fresh determination on actual production basis.

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Issues: Whether the assessee's request for re-determination of duty liability on the basis of actual production under section 3A(4) of the Central Excise Act, 1944 was required to be considered.

Analysis: The dispute concerned duty liability under the compound levy scheme and the assessee had specifically sought re-determination on actual production basis. The rejection was founded only on the fact that the company was under BIFR. Since sub-section (4) of section 3A expressly permits re-determination on actual production, that request could not be declined without considering the evidence and data placed by the assessee.

Conclusion: The request for re-determination under section 3A(4) ought to have been considered, and the matter was required to be sent back for fresh determination on actual production basis.

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