9911796707
TMI Blog2014 (5) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty and the said Central Excise duty shall be collected in accordance with the provisions of this Section. The said Section 3A also starts with non-obstante law. A plain reading of the said Section would indicate that in the case of notified goods, like the goods manufactured by the assessee who is an independent processor, then the duty liability has to be discharged based on the annual production capacity which is required to be determined. Duty liability on the notified goods under Section 3A of Central Excise Act, 1944 has to be worked out as provided thereunder. Since I have already held that the show cause notice is issued on the ground that M/s Super Processors, the main person is independent processor, invoking the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 3 or 3A of Central Excise Act, 1944. He draw my attention to the show cause notice and submit that the entire issue in the show cause notice was that after the introduction of compounded levy in respect of independent processors of textile fabrics was brought into play by the provisions of Section 3A of Central Excise Act, 1944. It is his submission that the show cause notice clearly states that M/s Super Processors were independent processor and had subsequently bifurcated the activity to avoid imposition of compounded levy on them. It is his submission that if the provisions of Section 3A are applicable to this case, then the demand worked by the adjudicating authority under the provisions of Section 3 read with Section 11A of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stenter in their factory. It is also to be noted that the provisions of Section 3A were inserted w.e.f. 1997 and the appellants were directly covered under the said provisions of Section 3A of the Central Excise Act, 1944 and were liable to pay the Central Excise duty in accordance with the provisions of said Section and the rules made thereunder. On perusal of the said Section 3A, it clearly transpires that the goods which are notified under the said Section are to be levied with the Central Excise duty and the said Central Excise duty shall be collected in accordance with the provisions of this Section. The said Section 3A also starts with non-obstante law. A plain reading of the said Section would indicate that in the case of notifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty liability on the notified goods under Section 3A of Central Excise Act, 1944 has to be worked out as provided thereunder. Since I have already held that the show cause notice is issued on the ground that M/s Super Processors, the main person is independent processor, invoking the provisions of Section 3A would have been more appropriate than invoking the provisions of Section 3 read with Section 11A of Central Excise Act, 1944 against the appellant. 10. In view of the foregoing, the entire appeal is allowed in respect of this appellant who is a sole proprietorship firm, on the ground that of non-applicability of the provisions of Section 3 of Central Excise Act, 1944 on the goods notified by the appellant. 11. As I have set asid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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