2002 (5) TMI 152 - AT - Central Excise

Summary

Issues:
1. Capacity determination under compounded levy scheme
2. Right to opt out of the scheme

Capacity Determination:
The appellant, engaged in M.S. Cast Bars production, challenged the capacity fixed by the Commissioner at 3.5 MTs under the compounded levy scheme. The appellant presented expert opinion and a letter indicating a lower capacity, but the Commissioner relied on the invoice for machinery as per the Induction Furnace Annual Capacity Determination Rules, 1997. The Tribunal upheld the Commissioner's decision, stating that the determination based on the invoice was in accordance with the rules, and no physical measurements or expert reports were necessary.

Opting Out of the Scheme:
The appellant opted out of the compounded levy scheme in 1997. The Tribunal referred to the Supreme Court's decision in Supreme Steel [2001 (133) E.L.T. 513], stating that the option to remain in the scheme is binding for the concerned year only. Citing a previous case, the Tribunal remanded the decision back to the Commissioner for reconsideration in light of the Supreme Court's ruling. The appellant's request to opt out of the scheme for the financial year 1998-99 was accepted, and the appeal was disposed of accordingly.