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TMI Blog2003 (8) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... ng duty at compounded rates. The present appeal challenges duty demand at compounded rates and seeks levy of duty based on the actual production. Ground (B) of the Appeal states as under : (B). That duty of excise of Chapter 72 is prescribed in Schedule to the Central Excise Tariff Act, 1985 which has authority of law. The levy and rate prescribed in the Schedule is a compulsory obligation to be discharged by the manufacturer of the goods of Chapter 72. The appellant also has submitted that it had not opted for payment of duty under Rule 96ZO(3). 2. As against this, the submission of the Revenue is that the appellant had discharged duty as specified in sub-rule (3) of Rule 96ZO of the Central Excise Rules in terms of Compounded Levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As against this, the appellant s demand is that duty be collected on actual production. This demand is clearly contrary to the scheme of levy of duty on a compounded basis which remains upheld by the Apex Court. We do not also find substance in the appellant s contention that it had not opted to discharge duty under Rule 96ZO(3). Firstly, as a matter of fact, it made payment of duty at amounts mentioned in that sub-rule. That permits a manufacturer, if he so desires , to pay the fixed sum mentioned in the sub-rule. Secondly, the appellant s demand all along was to pay duty on a basis contrary to the compounded levy scheme. That the appellant was seeking the impossible is clear from its letter dated 12-9-97 which is reproduced below : D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. We have earlier apprised in our representation that actual production is dependent upon availability of raw materials, interrupted electric supply, labour, finance etc. All these facts, in the past have been hurdles to us and we foresee these hurdles are to continue in future also and we shall never be able to get the actual production on the basis of application of the formula as notified in the Notfn. No. 24/97-C.E. (N.T.), dated 25-7-97. We hope that your honour will be pleased to consider all the factors responsible for production and determine the ACP accordingly in terms of sub-section (2) of Section 3A of Central Excise Act, 1944, taking into account our performance in the past. 4 We are, therefore, awaiting for the orders of y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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