2008 (11) TMI 516 - AT - Central Excise

Summary

Issues involved: Calculation of duty u/s Rule 96ZP(3) of the Central Excise Rules, 1944 and interpretation of Section 3A(2) proviso regarding production calculation.

Calculation of duty u/s Rule 96ZP(3): The manufacturers of non-alloy steel hot re-rolled products appealed against the Commissioner's order confirming a duty demand. The appellants claimed abatement, which was rejected due to delayed closure intimation. However, a new plea was raised citing Section 3A(2) proviso, arguing for production calculation based on annual capacity proportion. The Tribunal found this plea crucial, setting aside the order and remitting the case for fresh decision, emphasizing the need for the adjudicating authority to consider the new submission.

Interpretation of Section 3A(2) proviso: The appellants contended that production should be calculated proportionately as the factory was closed permanently for a specific period. The Jt. CDR argued against this plea, stating that since it was not raised earlier, the impugned order was valid. The Tribunal, recognizing the significance of the plea, allowed the appeal by remanding the case for a fresh decision, ensuring the appellants are given a fair opportunity to present their defense in accordance with the law.