2004 (6) TMI 511

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.... discharge of Central Excise duty liability during September 1997 - March 2000. Under the scheme, which was introduced under Section 3A of the Central Excise Act, they had to pay a fixed amount of duty for every month as determined by the jurisdictional Commissioner of Central Excise who would determine the rolling mills annual capacity of production (ACP) and work out the monthly duty liability under the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997 (ACD Rules, for short). The ACP originally determined by the Commissioner as per order dated 11-12-1997 was 7784.834 MTs according to which the duty liability was Rs. 23,35,450 p.a. (Rs. 1,94,621 p.m.). This determination of ACP was on the basis of the parameters of rolli....

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....of the Re-rolling mill under Rule 3(4) of the ACD Rules with effect from 13-6-1998, alleging that the appellants had effected changes in 'd' and 'n' parameters immediately after the physical verification of 12-6-1998. The proposed ACP of the Re-rolling mill for the period from 13-6-1998 was 10,965.938 MTs and the resultant annual duty liability was Rs. 32,89,782/-. The show cause notice, however, took into account the fact that, after the surprise verification of parameters conducted by the officers on 4-8-1999, the party had restored the 'd' parameter to 255 mm by carrying out repairs and adjustments on the machinery and that, on a verification conducted by the Central Excise officers on 21-8-99, the value of 'd' was found to be 255 mm. Th....

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....ined by the Commissioner by adopting the 'd' value as 264 mm and the demand of duty for the subsequent period up to 31-3-2000 has been worked out on the basis of 'd' value of 255 mm. The challenge in this appeal is against the ACP determined for the period 12-6-1998 - 21-8-1999 and the consequential demand of duty. It has been contended by the appellants that they did not change the value of 'd' parameter of the mill at all and that the variation of 'd' value from 255 mm to 264 mm was due to wear and tear of bushes resulting in reduction of their thickness. On account of such reduction in the thickness of the bushes holding the pinions, pinion-to-pinion centre distance increased, according to the appellants. In support of this contention, t....

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....It is clarified that due to wear and tear caused by the aforesaid loads, the inner bore dia of bushes keeps on increasing. It is hereby clarified that the bore dia of the said pinion box can increase to the extent of 10-12 mm. " 4. The above certificate/technical opinion supports the contention raised by the party. It says that, due to wear and tear caused by loads on the machine, the inner bore dia of bush keeps on increasing and the same can increase to an extent of 10 - 12 mm. The Commissioner rejected the above technical opinion without disclosing cogent reasons. We are of the view that the technical opinion given by NISST, a Central Govt. institution, should have been accepted by the Commissioner in the absence of better author....