9911796707
TMI Blog2003 (3) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... loy steel ingots in their Induction Furnace. The commercial production was started with effect from 1-1-98. Intimation to that effect was given by the appellants vide their letter dated 30-12-97, wherein they clarified that they would be manufacturing 70% of the non-alloy steel ingots and 30% of the alloy steel ingots. The Revenue Authority was also informed subsequently, vide letter dated 21-1-98, that they would be primarily manufacturing alloy steel ingots and incidentally, they would also be manufacturing non-alloy steel ingots. 3. In response to the above letters, the appellants received a letter dated 20-3-98 intimating that the Commissioner of Central Excise, Kolkata-II was pleased to grant them permission with a view to elimin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and forty-five) was directed to be paid. The impugned Order has been passed by the Commissioner confirming the said amount of duty along with confirmation of interest. 6. The appellants' grievance during the course of adjudication before the Commissioner as also before us, is that the Revenue having themselves permitted the appellants to operate under the provisions of Section 3 of the Central Excise Act, 1944, cannot now demand the duty under the provisions of Rule 96ZO(3) for the past period. We find that the Commissioner admits in his impugned Order that such permission was granted to the appellants and they have discharged their duty liability, but states that since their revenue performance was not satisfactory inasmuch as they h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Central Excise, Kolkata-IV v. Hooghly Ispat Ltd. vide Tribunal's Order Nos. A-116-117/KOL/2002, dated 22-1-2002, wherein the appeal filed by the Commissioner against the Orders of the Commissioner (Appeals), was rejected after observing as follows :- "2. Inasmuch as the Commissioner vide his Order dated 25-3-99 allowed the respondents to work under the provisions of Section 3 with effect from 1998 and the respondents had discharged the duty burden under the said provisions after availing the Modvat credit, I find no infirmity in the Orders passed by the Commissioner (Appeals)..." 8. After considering the submissions made from both sides, we find that the Commissioner, while dealing with the appellants' contention that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n will be reviewed at the end of each financial year on the basis of revenue performance." In accordance with the above letter, the appellants discharged their duty liability in terms of the provisions of Section 3 of the Central Excise Rules, 1944, which permit them to avail the Modvat credit. After a period of one year, the Revenue cannot be expected to take a reverse stand and to take a view that such a permission was granted in a hurry to demand duty under the provisions of Section 3A for the period in question. We also note that the assessments were not provisional during the period in question and as such, the raising of demand of duty after a period of one year and that too, without issuance of any show cause notice, is not justifie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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