2005 (12) TMI 446 - AT - Central Excise

Summary

Issues:
Dispute over the quantity of Hot Re-Rolled products under the Compounded Levy Scheme introduced on 1-9-97.

Analysis:
The appeal before the Appellate Tribunal CESTAT, New Delhi involved a dispute regarding the quantity of Hot Re-Rolled products in the assessee's stock as of 31-8-97, when the Compounded Levy Scheme came into effect on 1-9-97. The original authority had confirmed a duty demand of Rs. 9,518/- with a penalty of Rs. 2,500/-. The Commissioner (Appeals) granted relief to the respondents based on Notification No. 50/97-C.E., dated 1 August, 1997, as amended by Notification No. 57/97-C.E., dated 30th August, 1997. The amended notification made changes to the application of the scheme to products produced before 1-9-97 and modified the nominal center distance requirement from 200 millimeters to 260 millimeters. Consequently, the Commissioner held that as the goods were produced before 1-9-97 and there was no evidence of the nominal center distance exceeding 160 millimeters, the duty under Serial No. 3 of the Notification, amounting to Rs. 150/- per Metric Tone, applied.

The Revenue, in their grounds of appeal, did not challenge or refute the findings of the Appellate authority regarding the application of the amended notification. The record did not indicate that the distance exceeded 160 millimeters. Consequently, the Tribunal found no merit in the Revenue's appeal and rejected it. The judgment highlights the importance of compliance with the specific requirements outlined in the relevant notifications and the significance of providing evidence to support any claims or challenges in such matters. The decision underscores the need for thorough documentation and adherence to regulatory provisions to avoid disputes and ensure fair application of duty liabilities under the applicable schemes.