2002 (6) TMI 458 - AT - Central Excise

Summary

Issues Involved:
1. Availability of the facility of making monthly payment of duty under Rule 173G(1) of the Central Excise Rules to a specific company.

Analysis:

Issue 1: Availability of Monthly Payment Facility
The appeal filed by Revenue questioned whether M/s. Kalson Automotive Pvt. Ltd. was entitled to make monthly duty payments under Rule 173G(1) of the Central Excise Rules. The Departmental Representative argued that the company, not availing SSI benefit, was directed to pay duty on a consignment basis for failing to make full installment payments. However, the Commissioner (Appeals) ruled in favor of treating the company as an SSI unit, allowing monthly duty payments. It was contended that the company must be "availing" exemption under a notification based on clearance value to qualify for monthly payments, not merely being an SSI unit. The Consultant for the company argued that they opted to pay 100% normal duty under the notification, indicating their eligibility for monthly payments. The Consultant cited legal precedents to support their position, emphasizing the need for a show cause notice before denying monthly payment facility.

Decision:
The Tribunal analyzed Rule 173G(1)(aa) of the Central Excise Rules, which mandates monthly duty discharge for manufacturers availing exemption based on clearance value. The company paid duty at the Tariff Rate, not availing the exemption under Notification No. 8/2000. The Tribunal noted that the company had the option to pay normal duty and could not claim exemption benefits later. As the company did not avail of the exemption based on clearance value, they were ineligible for monthly duty payments. The Tribunal upheld the Revenue's appeal, stating no violation of natural justice principles and distinguishing relevant legal precedents. The cross objection by the company was disposed of accordingly.