2011 (7) TMI 683

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....issioner (Appeals) short-demanded duty from the assessee. In all these cases, the basic dispute revolves around the applicability of Section 3A of the Central Excise Act. After hearing both sides, we note that these appeals can be disposed of in the light of the Hon'ble Madras High Court's judgment in Beauty Dyers vs Union of India 2004 (166) ELT 27 (Mad) which was followed subsequently by the Hon'ble High Court of Bombay also. 2. Both the assessees were engaged, during the material period, in the processing of textile fabrics. As independent textile processors, they were covered by the Compounded Levy Scheme of Rule 96ZQ of the Central Excise Rules, 1944 read with Section 3A of the Central Excise Act. Their Annual Capacity of Production (....

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....ity Determination Rules for the purpose of determination of ACP as part of the Compounded Levy Scheme in respect of textile fabrics manufactured by independent textile processors. The Hon'ble High Court particularly held Rule 3 of the said Rules to be ultra vires Section 3A of the Central Excise Act. It held that the writ petitioners had no duty liability otherwise than under Section 3 of the Central Excise Act. The writ appeal filed by the Revenue against the judgment of the Learned Single Judge came to be dismissed by a Division Bench of the Hon'ble High Court noting that Section 3A itself had been omitted from the statute book with effect from 11.5.2001. A special leave petition (SLP) filed by the Union of India against the judgment of t....