2014 (5) TMI 642

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....esides demanding interest, and penalty on proprietor. 2. Heard both sides and perused the records. 3. The demand of duty has arisen on the ground that the appellant, during the relevant period i.e. September 1999 to January 2000, had clandestinely manufactured and cleared the goods by artificially segregating the manufacturing activity. 4. Ld. Counsel appearing on behalf of the appellant would submit that the entire issue can be narrowed down on a preliminary law point of applicability of the provisions of Section 3 or 3A of Central Excise Act, 1944. He draw my attention to the show cause notice and submit that the entire issue in the show cause notice was that after the introduction of compounded levy in respect of independent pro....

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....ase is whether the appellant a sole proprietorship firm has been stated to be one of the unit called as M/s Super Processor, is liable to be saddled with the duty liability under the provisions of 3 read with Section 11A of Central Excise Act, 1944 or otherwise. 7. On perusal of the show cause notice and more specifically Para 40 and 41, it is seen that the lower authorities have specifically stated that M/s Super Processor was having facility of printing on flat belt printing machine as well as facility of heat setting/drying on a hot air stenter in their factory.  It is also to be noted that the provisions of Section 3A were inserted w.e.f. 1997 and the appellants were directly covered under the said provisions of Section 3A of th....

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....n, the provisions contained in the said Section override those of Section 3 of the Act. Rule 3 of 1997 Rules framed in terms of Section 3A(2) of the Act lays down the procedure for determining the annual capacity of production of the factory. Sub-rule (3) of that Rule contains a specific formula for determination of annual capacity of production of hot rolled products. This is the only formula whereunder the annual capacity of production of the factory, for the purpose of charging duty in terms of Section 3A of the Act, is to be determined. 9. It can be noticed that the law as laid down by the Apex Court holds that the duty liability on the notified goods under Section 3A of Central Excise Act, 1944 has to be worked out as provided there....