2000 (7) TMI 337

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....the applicants were having processing unit but at the same time had taken on lease a unit engaged in the spinning of yarn and weaving of fabrics. He submits that with the introduction of compounded levy, the department collected certain information from the applicants on 15-12-98. He submits that this information led to fixation of compounded levy in spite of the fact that the applicants had proprietary interest in a unit spinning the yarn and weaving the fabrics. He submits that the applicants filed a letter on 31-12-98 to the department. He submits that in this letter, the appellants had clarified the position that "Since we are having proprietary interest in a factory named and styled as M/s. Aar Kay Weaving Factory, Prop. M/s. Aar Kay P....

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....urt. He also submits that there was no stipulation about the demand of duty whereas while passing the order, the Commissioner quantified the demand without putting the applicants to notice. He submits that in view of the decision of the apex court on the question of lessee having proprietary interest, the applicant was not an independent processor and, therefore he submits that duty should have not been demanded on compounded levy basis but on the basis of actual production. He submits that the applicant has already discharged duty on the basis of actual production. He submits that the department has raised two SCNs demanding duty on which no adjudication order has so far been passed. He, therefore prays that in view of the above submission....