2018 (10) TMI 80

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.....03.2007 issued under Rule 15 of Central Excise Rules. The appellant had filed a claim for refund for Rs. 43920/- in respect to duty paid for the month of November 2016 and February 2017, on the ground that they have paid the excise duty for the entire month of November 2016and February 2017 whereas the cold rolling machines operating during those months were dismantled. It was mentioned that two no. of machines got dismantled w.e.f. 23.11.2016 to 30.11.2016 and one machine got dismantled and the non operating period thereon was 01.02.2017 to 14.02.2017. 3. The said refund for proportionate excise duty pertaining to the said period was rejected vide the order of original adjudicating authority bearing no. 2090 dated 30.05.2017, on the....

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.... be decided in this case is as to whether the refund claim of the proportionate Central excise duty deposited for the non working period of newly added machines is admissible to appellant, or otherwise. For the purpose, the impugned notification is relevant. The same reads as follows: "(1) A manufacturer whose application has been granted under paragraph 2 shall pay a sum calculated at the rate specified in this notification, subject to the conditions herein laid down, and such payment shall be in full discharged of his liability for duty leviable on his production of such cold re-rolled stainless pattas/pattis, or aluminum circles during the period for which the said sum has been paid: Provided further that when a manufac....

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.... Said rule provides for special procedure for payment of duty on the basis of such factors as may be relevant to production of such goods. This notification gives an option to the manufacturer of SS Patta/ Patti which are subjected to the process of cold rolling, whereby assessee can pay excise duty on the basis of no. of cold rolling machines installed for cold rolling of those goods. 8. Since this notification is issued under Central Excise Rules the provision thereof cannot be construed in the manner which is against Central Excise Act. Rule 3 of Central excise Act 1994 says that the duty is leviable on the manufacture of the excisable goods. Hence, when no cold rolling machine was installed or any of the machine was not operational q....