2017 (6) TMI 1101

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.... re-rolled steel products falling under CSH 72 and they were covered under provisions of Section 3A of Central Excise Act, 1944, for payment of Central Excise duty on the basis of the capacity of annual production determined by the Commissioner in terms of Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997, which was in force from 1.8.1997. Due to certain factor like non-availability of electricity, the appellants could work their manufacturing unit only during the period 1.9.1997 to 2.10.1997. In terms of the above Rules, the Commissioner of Central Excise, Mangalore-II Commissionerate, fixed the annual capacity of production at 6616.08 MT per annum for the year 1997 - 98 and in terms of the above fixation a quantity of 3....

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....ad given relief to the assessee. The Commissioner (A) allowed the Revenue s appeal. Aggrieved by the order of the Commissioner (A), the appellant has filed the present appeal. 3. Heard both the parties and perused the material on record. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed by ignoring the statutory provision. He further submitted that as per Section 3A(4) of the Central Excise Act, 1944, which clearly provides for determination of duty liability based on actual production even where the assessee opted for annual capacity basis payment of duty. He also referred to the Notification No.31/1997-CE dated 1.8.1997 and also referred to Extracts of Hot Re....