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TMI Blog2010 (5) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... ied under Textiles and Textiles Articles Act, once they have paid duty in terms of Notification No. 33/2001-C.E., dated 28-6-01. 2. The special procedure for payment of duty on embroidery fabrics (commonly referred to as the 'Compounded Levy Scheme') is governed by Notification No. 33/2001-C.E., dated 28-6-01, issued under the provisions of Rule 15 of the Central Excise (No. 2) Rules, 2001. As per the scheme notified, manufacturers of embroidered fabrics, have an option to pay duty at the rate of Rs. 45 per meter length (PMT) of the machine per shift, instead of the regular rate of duty prescribed under the Schedule to the Central Excise Tariff Act, read with any relevant notification. The scheme further makes it clear (in para 3 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the compounded levy scheme as duty of Excise under Central Excise Act, 1944 and thereby has followed the hybrid system of collection of duty. He also submits that no penalty could have been imposed since short levy arises as a result of interpretation of notification. Further, he also submitted that the demand should have been made under Section 3 of the Act and not under Section 11A of the Central Excise Act, 1944. 5. Learned SDR, on the other hand, submits that the Commissioner (Appeals) has considered all the issues and has come to a logical conclusion and there is no need to interfere with the same. 6. We have considered the submissions made by both sides. 7. We find that the arguments advanced by the learned Chartered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and the proceeds thereof shall not be distributed among the States. (3). The provisions of the Central Excise Act, 1944, and the rules made there under, including those relating to refunds and exemptions from duties, shall, so far as may be, apply in relation to the levy and collection of the duties of excise leviable under this Section in respect of any goods as they apply in relation to the levy and collection of duties of excise on such goods under that Act or those rules." 8. This Section makes it very clear that while arriving at the rate of Central Excise Duty, it has to be read with the concerned exemption notification relevant to the duty. There cannot be any doubt that the Notification No. 33/2001-C.E., dated. 28-6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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