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2008 (6) TMI 485 - AT - Central Excise
Issues involved:
The issues involved in the judgment are the re-fixation of annual capacity of production by the Commissioner without formal review, validity of re-determination under the Compounded Levy Scheme, failure to file appeals against re-determination, duty demand and interest payment, and waiver of penalty amount. Re-fixation of Annual Capacity of Production: The Appellants challenged the impugned orders on the ground that the annual capacity of production was re-fixed by the Commissioner without formally reviewing the earlier orders. The Commissioner re-determined the annual capacity of production through letters dated 14-6-1999 and 3-8-1999. The Tribunal found that the impugned orders were passed in accordance with the re-determined annual capacity. The Appellants manufacture both alloy steel and non-alloy steel, with non-alloy steel constituting about 70% of total production. The re-determination of annual capacity under the Compounded Levy Scheme for the entire quantity was deemed valid in accordance with the law. The Appellants did not file any appeals against the re-determination, leading to a loss of their right to question the re-fixation of annual capacity. Duty Demand and Interest Payment: The Tribunal concluded that there was no merit in the Appeal, and therefore, the duty demand and interest on the duty were required to be paid by the Appellants in accordance with the law. However, considering the facts and circumstances of the case, including the initial payment of duty amounts as determined by the Commissioner, the penalty amounts imposed on the Appellants were waived. The Appeal was rejected except for setting aside the penalty amount, and the Cross Objection was also disposed of accordingly. Separate Judgement: No separate judgment was delivered by the judges in this case. Conclusion: In summary, the Appellate Tribunal upheld the re-fixation of annual capacity of production by the Commissioner, deemed the re-determination under the Compounded Levy Scheme as valid, required duty demand and interest payment by the Appellants, and waived the penalty amounts imposed on them due to the circumstances of the case. The Appeal was rejected except for setting aside the penalty amount, and the Cross Objection was disposed of.
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