2018 (2) TMI 379

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....of MS ingots and billets of non-alloy steel in their factor at Hosur. During the period from 01.09.1987 to 31.03.2000 Compounded Levy Scheme (hereinafter referred to as "CLS') was in force with regard to the impugned steel products and duty had to be discharged on the basis of Annual Capacity of Production (hereinafter referred to as "ACP") fixed by the competent Central Excise authorities. During the period, the assessee had three furnaces with the following capacities :- (i) Induction Therm Furnace (ITL) 1.43 MT Capacity (ii) ABB make furnace 3.09 MT Capacity (iii) ALIDIA make furnace 4.01 MT Capacity 3. It is the case of the assessee that due to breakdown/closure/dismantling of furnaces during the compounded levy....

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....ourt. The same view has to be applied to the latter period involved in Appeal No.E/00130/2009 and therefore, the assessee is eligible for abatement on pro-rata basis. With respect of payment of interest and imposition of penalty, learned counsel submits that provisions of 96ZO, 96ZP and 96ZQ have been struck down as ultra vires by the Hon'ble Supreme Court in the case of M/s. Shree Bhagwati Steel Rolling Mills Vs Commissioner of Central Excise reported in 2015 (326) E.L.T. 209 (S.C.) hence the demands on interest and penalty cannot sustain. He also submitted that the Commissioner in the appeal no.E/00130/2009 had allowed abatement, which was appealed by department. The Commissioner allowed the abatement following the observation of the ....

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....total furnace capacity of 3 MTS installed in his factory so desires, he may, from the first day of September, 1997 to 31^st day of March, 1998 or any other financial year, as the case may be, pay a sum of rupees five lakhs per month in two equal instalments, the first instalment latest by 15^th day of each month/ and the second instalment latest by the last day of each month, and the amount so paid shall be deemed to be full and final discharge of his duty liability for the period from the 1^st day of September, 1997 to the 31^st day of March, 1998, or any other financial year, as the case may be, subject to the condition that the manufacturer shall not avail of the benefit, if any, under sub-section (4) of the section 3A of the Central Exc....