TaxTMI 
TaxTMI 
2019 (1) TMI 710
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....ise of power conferred under the aforesaid Section 3A ? (ii) Whether confirmation of demand by the Tribunal based on annual production capacity determined by Commissioner of Customs and Central Excise without taking into account factor of electricity is utterly perverse? (iii) When documentary evidence clearly shows of restricted supply to the Appellant/manufacturer unit during the disputed period for a continuous period of more than seven days, whether abatement as provided in sub clause (3) of Section 3A deniable ? Whether finding of the Tribunal in this regards is perverse ? 4. The challenge in this appeal is to the Judgment and Order dated 8 October 2015 made by the Customs, Excise and Service Tax Appellate Tribunal, (CESTAT) in Appeal No.E/1691/05. 5. Mr. Rajiva Srivastava, the learned Counsel for the Appellant submits that there is no substantive provision under the Central Excise Act, 1944 (said Act) for levy of interest, when it comes to payment of excise duty under Section 3A of the said Act. Therefore, Rule 96 ZO of the Central Excise Rules, framed in pursuance of the powers conferred under Section 3A of the said Act, to the extent such rule provides for levy o....
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....ated by Section 3A of the said Act and Rule 96ZO(3) or Rule 96ZP(3) of the Excise Rules are two alternative procedures to be adopted at the option of the Assessee. If the Assessee opts for procedure under Rule 96ZO(1), he may opt out of the procedure under Rule 96ZO(3) for a subsequent period and seek the determination of annual capacity of production. The Assessee cannot, however, have a hybrid procedure of combining the procedure for the same assessment year. She submits that if the contention of the Assessee, based upon the alleged circumstances relating to power cuts/power outages, is to be upheld, then, that would amount to permitting the Assessee to resort to a hybrid procedure, which is clearly not permissible. She relies on Commissioner of Central Excise & Customs vs. Venus Castings (P) Ltd. (2000) 4 SCC 206 and Union of India and ors. vs. Supreme Steels and General Mills and ors. (2001) 9 SCC 645 in support of this contention. 10. She further submits that in any case, in the present proceedings the Assessee had never challenged the determination of the annual production capacity which was worked out by the Authorities in accordance with law. She submits that this is clear....
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....that the due amount on pro rata basis amounting to approximately Rs. 3.17 lacs was, therefore, paid by the Assessee to the Revenue and there was no liability to pay any further amount. 15. The Revenue issued two show cause notices to the Assessee, demanding the amount of excise duty short paid, along with interest at the rate of 18 % per annum from the date till the date of actual payment. The Assessee disputed the liability for payment and sought personal hearing to substantiate such dispute. Ultimately, the Commissioner of Central Excise, after afford of personal hearing, by order dated 12/02/2004, confirmed the demand with interest and further imposed penalty upon the Assessee. 16. The Assessee, aggrieved by the order dated 12/02/2004 appealed to the CESTAT vide Appeal No. E/1691/05. This was disposed of by the impugned order dated 8 October 2015. The CESTAT confirmed the demand with interest, but, set aside the penalty imposed by the Commissioner of Central Excise. The Assessee has, therefore, instituted the present Appeal against the impugned order dated 8 October 2015 to the extent the same upholds the demand along with interest. 17. In so far as the issue of levy o....
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....ailing the facilities under the compound levy scheme, which they themselves opted for and filed declarations furnishing details about the annual capacity of production and duty payable on such capacity of production. It has to be taken into consideration that the compounded levy scheme for collection of duty based on annual capacity of production under Section 3 of the Act and the 1997 Rules is a separate scheme from the normal scheme for collection of Central excise duty on goods manufactured in the country. Under the same, Rule 96-ZP of the Central Excise Rules stipulates the method of payment and Rule 96-ZP contains detailed provision regarding time and manner of payment and it also contains provisions relating to payment of interest and penalty in the event of delay in payment or non-payment of dues. Thus, this is a comprehensive scheme in itself and general provisions in the Act and the Rules are excluded." [Emphasis supplied] 20. Taking into consideration the aforesaid legal position, the Commissioner of Central Excise was obviously not right in demanding the interest from the Assessee and that the CESTAT was also not right in confirming the demand for interest. To t....
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....seven days and wishes to claim abatement under sub-section (3) of Section 3A of the said Act, the abatement will be allowed by an order passed by the Commissioner of Central Excise of such amount as may be specified in such order, subject to fulfillment of the following conditions, namely : (a) the manufacturer shall inform in writing about the closure to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise with a copy to the Superintendent of Central Excise, either prior to the date of closure or on the date of closure; (b) the manufacturer shall intimate the reading of the electricity meter to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, immediately after the production in his factory is stopped along with the closing balance of stock of the ingots and billets of non-alloy steel; (c) the manufacturer, when he starts production again, shall inform in writing about the starting of production to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, either prior to the d....