2007 (1) TMI 370 - AT - Central Excise

Summary

Issues:
Interpretation of a notification regarding compounded levy scheme for aluminium circles under Notification No. 33/97 dated 30-5-97.

Analysis:
The appellant filed a refund claim of Rs. 44,000 under the compounded levy scheme for aluminium circles manufactured from 1-6-97 to 26-11-97. The dispute arose as to whether the duty was based on the diameter of the circles or the roller length of the machines. The appellant claimed the duty was based on the diameter of the circles, while the authorities argued it was based on the production capacity of the machines.

The Notification No. 33/97 introduced the compounded levy scheme for aluminium circles, specifying duty rates per machine per month based on the size of the roller of the machine. A subsequent clarification by the Board on 28-11-97 emphasized that the duty rates were linked to the roller length of the machines, not the diameter of the circles. The clarification aimed to resolve doubts regarding the interpretation of the term "size" in the notification.

The authorities maintained that the duty under the Compounded Levy Scheme was determined by the production capacity of the machines, which in turn depended on the roller length. The maximum circle size that could be manufactured was related to the roller length, as clarified by the Board. Consequently, the refund claim of the appellant was rejected as the duty calculation was deemed correct based on the machine's production capacity.

In conclusion, the Tribunal upheld the decision to reject the appellant's refund claim, emphasizing that the duty under the compounded levy scheme for aluminium circles was indeed based on the production capacity of the machines, specifically the roller length. The judgment dismissed the appeal, affirming the authorities' interpretation of the duty calculation methodology under the scheme.

(Order dictated in the open Court.)