2009 (3) TMI 839

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....acture of Hot Re-rolled products of non-alloy steels falling under Chapter 72 of the Schedule to Central Excise Tariff Act, 1985. They were registered with the Central Excise Department for manufacturing excisable goods in the month of May, 1997. Their mill was closed from 1-8-1997 to 18-11-97, which was duly informed to the Central Excise office. From September, 1997 Compounded Levy Scheme under Section 3A of the Central Excise Act was introduced on iron and steel products. By letter dated 17-11-97 the appellants declared various parameters of the mill for the purpose of determination of Annual Capacity of Production (ACP) and duty liability. They opted for payment of duty under Rule 96ZP(3) of the erstwhile Central Excise Rules, 1944. By ....

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....ed in 2000 (117) E.L.T. 273 (S.C.) held that option under Section 3A of Central Excise Act, 1944 cannot be changed. He also submits that Rule is very clear and, therefore, the appellants are liable to pay duty from 1-9-97 even if there was no production. 5. After hearing learned D.R. and on perusal of the records, I find that Compounded Levy Scheme under Section 3A was introduced from September, 1997. The production in the appellants' factory was closed down from 1-8-97 to 18-11-97. The appellants applied for determination of Annual Production Capacity by their letter dated 17-11-97. They opted for payment of duty under Rule 96ZP(3) on 17-11-97. Sub-rule (4) of Rule 96ZP provides that in case a manufacturer opt to pay duty liability....