2003 (10) TMI 599

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.... Mrs. K.A. Mishra, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The appellants are manufacturers of mild steel ingots etc. They discharged their Central Excise duty liability under the Compounded Levy Scheme (Section 3A of the Central Excise Act). This scheme levies duty based on the capacity of production. The impugned order has determined the capacity of the furnace....

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....nation of the capacity would tantamount to assessing actual production and not discharging of duty based on the capacity of production. 3. As against this, the learned SDR has submitted that, in the present case, sale and purchase of furnace is not involved. The original furnace was of 4 M.T. capacity. The appellants had claimed that the capacity had been reduced to 3 M.Ts and in support o....

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....o reduce it from 4 M.T. to 3 M.T. In such a case, verification of the capacity by the Central Excise authorities cannot be faulted. Since, upon verification, the capacity was found to be reduced only to be 3.59 MT, the authority was justified in fixing annual capacity of production based on that furnace capacity. We are not able to agree with the appellant's Counsel that the verification carried o....