2018 (10) TMI 951 - AT - Central Excise

Valuation - Compounded Levy Scheme - valuation on actual production basis under sub- Section 4 to Section 3A of the Central Excise Act 1944 - principles of natural justice - Held that - In compliance with the direction of the Hon ble High Court the appellant filed a reply and submissions before the adjudicating authority on 10.09.2008 and 29.09.2008 but without considering the submission made by the appellant the impugned order has been passed which is in contravention of the principles of natural justice - the adjudicating authority is directed to pass the order to fix production of capacity as directed by this Tribunal vide order dated 29.06.1998 - appeal allowed by way of remand.

Summary

Issues:
Challenge to duty liability under the Compounded Levy Scheme for the period September 1997 to March 1998 and April 1998 to February 1999.

Analysis:
The appellants challenged the duty liability confirmed in the impugned order under the Compounded Levy Scheme for the mentioned periods. Initially, the Tribunal accepted the appellants' claim that duty should be based on actual production under Section 3A of the Central Excise Act, 1944. However, the adjudicating authority did not comply with the Tribunal's direction and determined duty liability under Section 3A(2) of the Act. The Tribunal remanded the matter twice, directing the authority to redetermine duty based on actual production. The High Court also directed a fresh decision, emphasizing the principles of natural justice. Despite the appellant's submissions, the impugned order was passed without due consideration. Therefore, the Tribunal set aside the order and directed the adjudicating authority to fix production capacity as per the Tribunal's previous order, giving a final opportunity for compliance.

Final Decision:
The impugned orders were set aside, and the appeals were allowed by way of remand, emphasizing the need for the adjudicating authority to pass an appropriate order in accordance with the law after providing a fair hearing to the appellants.