TaxTMI 
TaxTMI 
2002 (2) TMI 252
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....acity Determination Rules, 1997 and they were required to pay Central Excise duty amounting to Rs. 69,150/- per month. 2. The appellants closed their factory permanently on 4-12-97 and surrendered their registration certificate. They intimated the Commissioner, Assistant Commissioner, and the jurisdictional Range Superintendent vide their letter dated 5-12-97 that their factory was closed permanently from 4-12-97. They submitted that in terms of the proviso to sub-section (2) of Section 3A of the Central Excise Act, 1944, they were not liable to pay the duty for the period from December, 1997 to March, 1998. They were however, issued four show cause notices dated 3-4-98 to 25-5-98 demanding duty of Rs. 4,14,900/- for the period October, 1....
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....e submissions made before us. The lower appellate authority in his order has observed that the relief under the proviso to Section 3A(2) is not available to the appellants since the same would be available to them for fixing the ACP for the next year i.e. 1998-99. The provisions under the proviso to Section 3A(2) are reproduced below : "(2) Where a notification is issued under sub-section (1), the Central Government may, by rules, provide for determination of the annual capacity of production, or such factor or factors relevant to the annual capacity of production of the factory in which such goods are produced, by the Commissioner or Central Excise and such annual capacity of production shall be deemed to be the annual production of such ....