2011 (3) TMI 1139 - AT - Central Excise

Re-determination of annual capacity - Appellant filed declaration for determination of their production capacity of the rolling mill under the Compounded Levy Scheme - denial of request - Held that - As Appellant asked for re-determination of their capacity of their mill and the same was under consideration as per the correspondence between the parties and no opportunity of hearing was granted before rejecting the request hence the jurisdictional Commissioner of Central Excise is directed to pass an appropriate order on the request of re-determination of the annual capacity after affording an opportunity of hearing to the Appellant.

Summary

Issues: Request for re-determination of annual capacity under the Compounded Levy Scheme.

Analysis:
The appellant filed an appeal against the order rejecting their request for re-determination of their production capacity of the rolling mill under the Compounded Levy Scheme. The appellant contended that their parameters were not correctly considered in the initial determination. The Revenue argued that the request had already been rejected in a previous letter. The appellant claimed that they had informed the revenue authorities about restarting their mill but were not granted a hearing before their request was declined. The Tribunal noted the correspondence between the parties and directed the Commissioner of Central Excise to pass an appropriate order on the re-determination request after providing the appellant with an opportunity of hearing.

Conclusion:
The Tribunal disposed of the appeal by directing the jurisdictional Commissioner of Central Excise to consider the appellant's request for re-determination of their annual capacity after affording them an opportunity of hearing.