2005 (10) TMI 465

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....r]. - There are two appeals before me, one by the assessee and the other by the Revenue, both against the same order of the Commissioner (Appeals). 2. The assessee, engaged in the manufacture of re-rolled steel products, was working under compounded levy scheme during the material period. Their Annual Capacity of Production (ACP) was provisionally determined by the Commissioner as 880.0....

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....eration of the orders passed by the jurisdictional Commissioners of Central Excise under Rule 5. Thus there was an interim stay of operation of the order dated 26-9-97 passed by the Commissioner of Central Excise, Chennai-I in the assessee's case. During the stay period, the assessee paid duty on the basis of the ACP determined under Rule 3. This arrangement was acceptable to the department also. ....

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....ntral Excise in an order which was passed after the Commissioner's finalisation of ACP, dated 9-6-2003. The assessee had no grievance against the Dy. Commissioner's decision as the latter refrained from imposing penalty. The department, however, wanted the assessee to be penalised for the alleged "default" of payment of duty. Accordingly, they filed an appeal with the Commissioner (Appeals) and th....

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....factually incorrect inasmuch as, during the pendency of their Writ Petitions before the High Court, they were entitled to pay duty at the lower rate by virtue of the interim stay order passed by the High Court. It is also borne on record that the Commissioner himself allowed the assessee to continue to pay duty at the lower rate in view of the High Court's stay order. In the circumstances, it cann....