TaxTMI 
TaxTMI 
2010 (5) TMI 449
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....nt appeal arises from the order dated 17th September, 2004 passed by the Commissioner (Appeals), Chandigarh, whereby appeal filed by the respondents has been allowed. The said appeal was filed by the respondents against the order dated 16th July, 2004 passed by the Joint Commissioner of Central Excise, Chandigarh. 4. The respondents were engaged in the manufacture of non-alloy steel ingots/billets classifiable under sub-heading No. 7206.90 of the Schedule to the Central Excise Tariff Act, 1985 and chargeable to the duty in terms of Section 3A of the Central Excise Act, 1944. The total capacity of furnaces installed in the factory of the respondents was found to be 1.36 MT. The annual capacity of the respondents was, therefore, dete....
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.... by the adjudicating authority as the amount was payable in terms of the provisions of Compounded Levy Scheme and accordingly the duty was required to be paid on the basis of production capacity fixed by the Commissioner and there was no abatement claim in favour of the respondents in respect of the period in question. 6. The Commissioner (Appeals), however, after taking note of the decisions of the Apex Court in the matter of CCE v. Venus Casting Pvt. Ltd., reported in 2000 (117) E.L.T. 273 (S.C.) and Union of India v. M/s. Supreme Steel & General Mills, reported in 2001 (133) E.L.T. 513 (S.C.), observed that, in view of the said decisions, an assessee can opt out of the Compounded Levy Scheme on expiry of the financial year and, ....
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....lied to the Commissioner under Section 3A(4) for redetermination of duty liability, which has not been done by the party. That the Commissioner (Appeals) has grossly erred in stating that excess duty has been paid by the party. In fact the demand has been rightly confirmed and penalty has been rightly imposed." 7. In support of the above contention, the learned DR for the appellant apart from drawing our attention to the provisions of Rule 96-ZO and Section 3A(4) of the Central Excise Act, 1944 has sought to rely upon the decisions of the Apex Court in the matter of Venus Casting Pvt. Ltd. (supra) and M/s. Supreme Steel & General Mills (supra). 8. There cannot be any dispute that the assessee, having once opted for the ....
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....er metric tonne on annual capacity of production of his factory as determined under the Induction Furnace Annual Capacity Determination Rules, 1997. The provisions of sub-rule (1) of Rule 96ZO are subject to the provisions of sub-section (4) of Section 3A of the Central Excise Act, 1944. 11. Sub-rule (3) of Rule 96ZO provided that, if a manufacturer having a total furnace capacity of 3 metric tonne installed in his factory, so desires, he may pay a sum of rupees five lakhs per month in two installments subject to condition that the manufacturer shall not avail the benefit, if any, under sub-section (4) of Section 3A of the Act. It further provided that if the capacity of the furnaces installed in a factory was more than or less tha....
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....)/98/2392-94 dated 30-9-1998 7,31,000 3/98 to 6/98 3 V-30(8)D/99/117-119 dated 12-1-1999 13,60,000 7/98 to 11/98 4 V-30(69)D/99/215 dated 2-7-1999 11,35,000 12/98 to 4/99 5 V- 20/MISC/DMD/NGURPR/ 8/98/443 dated 9-11-1999 13,62,000 05/99 to 10/99 15.Though the respondents vide their letter dated 28-3-1998 had opted to pay Central excise duty under Rule 96ZO in terms of Notification Number 47/97-C.E., dated 1-8-1997 @ Rs. 750 per MT with effect from April 1998, they were required to discharge their total duty liability @ Rs. 750 per metric tonne on annual capacity of production, as determined by the ....