9911796707
TMI Blog2005 (2) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... ZP of the Central Excise Rules, 1944 read with Section 3A of the Central Excise Act, 1944. Under the said scheme, they had to discharge duty liability on their products (hot re-rolled non-alloy steel products) on the basis of the annual capacity of production (ACP) to be determined by the jurisdictional Commissioner of Central Excise under the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997 (for short ACD Rules). Three show-cause notices were issued by the Department demanding duty from the appellants for the period March-August 98 and July 99-Marach 2000, amounting to Rs. 11,15,783/-. Penalties were also proposed in these notices. The demand of duty was based on ACP allegedly determined by the Commissioner. But the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 35F of the Central Excise Act. The party did not make the deposit. Consequently, their appeal was dismissed for non-compliance with Section 35F. Hence the present appeal before us. 3. Heard both sides. Ld. Counsel for the appellants submits that no order of the Commissioner determining their ACP was received by them. The Assistant Commissioner s letters communicating provisional and final determination, by the Commissioner, of their ACP did not meet the requirements of Rule 4 of the ACD Rules. In the absence of valid order of determination of ACP, any demand of duty under Rule 96ZP read with Section 3A is not sustainable in law. Ld. SDR submits that the Assistant Commissioner s communication of ACP was not challenged by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacturer. Any letter sent by any subordinate officer intimating to the party an ACP claimed to have been determined by Commissioner would not serve this requirement of law, nor would such letter be a legally valid basis for demand of duty. Therefore, after setting aside the Assistant Commissioner s proceedings dated 14-10-1997 and 6-4-1998, we direct the jurisdictional Commissioner of Central Excise to determine the ACP of the appellant-unit for the relevant period in accordance with law and the principles of natural justice and duly communicate the same to the party. He shall also quantify the demand of duty after taking into account the payments already made by the party. In the circumstances, the Order-in-Original confirming dema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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