2019 (10) TMI 45

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....t to duty and appellant are also entitled to cenvat credit on inputs and capital goods. Notification No. 17/2007-CE dated 01.03.2007 provides that the manufacturer manufacturing excisable goods like stainless steel, patta and pattis or aluminium circle by subjecting to the process of cold rolling with the aid of cold rolling machine, such assessee shall have option to pay the duty of excise on the basis of number of cold rolling machines installed for manufacture of these goods (compounding basis). In respect of manufacture of patta and pattis the compounded duty shall be Rs. 30,000/- per cold rolling machine per month, provided that no credit of duty on any raw materials, components part or machinery or goods (inputs) used in cold rolling ....

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....ppellant was any time found to be operating more than two cold rolling machines, in violation of their declaration. It is alleged in the show cause notice that statement of Authorised Signatory Mr. Umesh Kumar Binwal was recorded on 13.02.2012 before Superintendent, in which he categorically admitted that they are having six cold rolling machines in their factory w.e.f. April, 2011. He further stated that the other machines are lying in dismantled condition and have no electric connection and they are wrapped with PVC sheet, not ready for start of production. He further stated that they have paid duty correctly on the basis of number of cold rolling machines used for production in a particular month. Further stated that no duty is payable o....

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....t, 1944. Rule 96ZB(2) cannot be read independent of Rule 96ZB(1). Thus in all cases whatever may be the situation, the tax is to be levied on the basis of maximum number of cold rolling machines installed and operated by and on behalf of such manufacturer in immediately preceding three calendar months. It that were so, the expression immediately preceding three calendar months in which application is made, the Rule will become redundant. Distinction has to be drawn between requirement of application under Section 96ZC, before removing the goods and the requirement of intimating the officer before removing the machine itself. The application is in respect of removal of the manufactured articles from the premises whereas intimation is only ne....