2002 (4) TMI 380 - AT - Central Excise

Summary

Issues:
1. Modification of stay orders for deposit amounts.
2. Interpretation of provisions regarding payment of duty under Rule 96ZP(1) and Section 3A(4) of the Central Excise Act, 1944.

Analysis:
Issue 1: Modification of stay orders for deposit amounts
The appellants filed miscellaneous applications seeking modification of stay orders that directed M/s. Dina Mahabir Re-Rollers (P) Ltd. to deposit Rs. 13,00,000 and M/s. Dina Metals to deposit Rs. 70,00,000 as a condition for pre-hearing their appeals. The appellants argued that they always paid duty on actual production under Rule 96ZP(1) and Section 3A(4) of the Central Excise Act, contrary to the JDR's submissions. They requested unconditional stay and remand of the matter for fresh adjudication.

Issue 2: Interpretation of provisions regarding payment of duty
After considering both sides, it was noted that in similar cases, it was decided that assessees are entitled to pay duty on actual production if it is less than the annual capacity fixed by the proper officer, as per Section 3A(4). The decision in the case of M/s. S.G. Multicast Pvt. Ltd. v. CCE, Jamshedpur was referenced, where it was clarified that the appellants opted for payment of duty under Rule 96ZP(1), allowing them to pay duty based on actual production. The provisions of Section 3A(4) were not excluded in such cases. The judgment emphasized that the manufacturer can pay duty based on actual production if it is lower than the production determined under Section 3A(2). Consequently, the stay orders were modified, the impugned order was set aside, and the appeal was remanded for fresh decision in light of the clarified interpretation.

In conclusion, the judgment addressed the modification of stay orders for deposit amounts and provided a detailed analysis of the interpretation of provisions governing the payment of duty under Rule 96ZP(1) and Section 3A(4) of the Central Excise Act, 1944, ensuring that the appellants were granted unconditional stay based on the clarified understanding of the law.