2010 (6) TMI 712

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... for the Appellant. Shri J.S. Negi, SDR, for the Respondent. ORDER The appellants were working under Compounded Levy Scheme in terms of Section 3A of Central Excise Act, 1944 and paying Central Excise duty @ Rs. 1.5 lakh per chamber, per month as per the provisions of Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998. 2. The Commissioner of C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....scrutiny of the RT-12 returns for the month of July '99, it was noticed that the appellant had paid Central Excise duty amounting to Rs. 3,00,000/- as against Rs. 5,25,000/- (3 chambers for the first fortnight and 4 chambers for the second fortnight) payable during the month and thereby they short paid duty amounting to Rs. 2,25,000/-. 5. The lower authorities have confirmed the demand for....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....submitted that Hon'ble Madras High Court in the case of Beauty Dyers v. UOI - 2004 (166) E.L.T. 27 (Mad.) has held that Rule 3 of Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 is ultra vires and therefore the demand is not sustainable. He also cited several other decisions where similar view has been taken which are as under : (i)   2006 (205....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....en note of that whenever such intimation is given, the officers are required to visit and verify. Since there are no observations that the officers have not visited or they have not verified, it has to be held that the assessee's claim has to be accepted. The demand stands confirmed on the ground that duty was required to be paid in the beginning of the month and abatement, if any, was to be claim....