TaxTMI 
TaxTMI 
TaxTMI 
2010 (6) TMI 206
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....down under Rule 96ZA of Central Excise Rules, 1944 for the period from 15-9-97 to 14-9-98 for which they have also obtained the permission. The appellants were granted the permission to avail the special procedure as laid down under Rule 96ZA of Central Excise Rules, 1944 for the period from 15-9-97 to 14-9-98 as per the declaration filed by them for the maximum 5 cold rolling machines installed in the factory. However, with effect from 1-2-98, they started paying the duty only on 3 cold rolling machines with a stoppage of two cold rolling machines for which they stated that these two cold rolling machines were stopped as they were very old one and their present condition required higher costs and time for the maintenance consumed more elec....
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....e two cold rolling machines for the period from Feb. 98 to July 98, under Section 11A(2) of the Act read with Rule 9 of the Rules and imposed penalty to the tune of Rs. 4,000/- on the appellants under Rule 96ZE (iii) of the Rules, for the two show cause notices in question. A grieved by the impugned order, they preferred an appeal before Commissioner. 12. The Commissioner (Appeals) upheld the impugned order by ob serving as under and hence the appeal. "5. I have carefully gone through the contentions raised by the appellants and the case records. I find that the appellants were working under provisions of Hot Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997 (the Rules, 1997 for brevity) and were granted the permission to a....
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....month is payable towards duty for a machine which is in stalled. The question as to whether it is stopped or running is immaterial. In this case, there is no evidence on record that the two machines were not in stalled during the period from Feb. 98 to July 98. Compounded levy is a special procedure for payment of Central Excise duty where-under a manufacturer discharges the duty payable on the excisable goods manufactured by him by making payment of amounts fixed for each machine installed. Hence, I do not find merit in the appellant's contentions and accordingly pass the following order. 7. The impugned order is upheld and the appeal is rejected." 3. We have heard Shri P.M. Dave, learned advocate appearing for the Assessee and Shri S.K.....
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....id Rule 96ZB necessarily refers to rolling machine which is actually being utilized, as is clear from the use of expression "utilised" in the notification No. 5. After giving careful consideration to the disputed issue, we find that a justifiable interpretation to the expression "installed" as appearing in Rule 96ZB is required to be given to. The present case is not one where the cold rolling machine installed in the factory has, intermittently not been used for production of final product, in which case, admittedly no relief can be given to the assessee for the period when the said installed machine was not being put to use. Here is a case where the machine originally installed subsequently broke down on ac count of its old condition and ....
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....granted (though not specifically asked for by the appellant), the appellants cannot be put to a circumstance disadvantageous to him. 6. We further note that the expression used in the notification issued in terms of provisions of Rule 96ZB is "utilized" as against expression "installed" used in the rule. "Utilized" necessarily mean used on continuation basis. By applying the golden rule of harmonious interpretation of statutes to the expression used in Rule 96ZB and in notification would be that the cold rolling machines should be installed and utilized in the assessee's factory. No doubt, the two machines in question were initially installed and utilized for cold rolling of stainless steel pattas/patties but subsequently they remained ins....