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TMI Blog2015 (2) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... of MS Ingots from MS Scrap by induction furnace. The appellant unit, during 1997-2000 period was operating under compounded levy scheme notified under Section 3A of the Central Excise Act, 1944. Subsequently Notification No. 50/2003-CE was issued. As an existing unit, the appellant company started availing of this exemption on the ground that they have expanded their installed capacity from 3 M.T. to 4 M.T. and in this regard they claimed that (a) they have modified the crucible by changing the top and bottom of the crucible and increasing its height (b) have changed the hydraulic system, (c) have added fuses, thyristers and capacitors and (d) in the panels, the invertors and rectified were also changed. The appellant in this regard also en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest thereon under Section 11AB and also imposed penalty of equal amount on the appellant company and imposed penalties on various Directors and employees of the appellant company. Against this order of the Commissioner, the appeal No. E/2398-2401/2008 EX have been filed. In respect of the subsequent period i.e. January 2006 to September 2006, October 2006 to June 2007 and July 2007 to May 2008, the Commissioner by 3 separate orders dated 31/5/07, 08/9/08 and 31/12/08 respectively confirmed the duty demands of Rs. 1,91,75,800/-, Rs. 1,96,53,083/- and Rs. 2,84,99,465/- respectively against the appellant alongwith interest thereon under Section 11AB and imposed penalty of equal amount on the appellant company under Section 11AC besid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his finding, the Commissioner has still denied the benefit of exemption Notification No. 50/03-CE on the grounds that (a) the increase in the installed capacity is not by addition of the new machinery and (b) the purchase of various items of machinery equipment claimed to have been installed, is not entered in the register maintained by the Trade Tax Department at Kotdwar check post and thus there is no evidence that the machinery/equipment which are claimed to have been purchased by the appellant and installed in order to increase the capacity had been received, that in the subsequent orders dated 08/9/08 and 31/12/08, the Commissioner has followed his order dated 20th August 2008 and in the order dated 31/5/07 he has followed his ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned that while on verification of the list of purchases made through the medium of import declaration forms, it has been found that the assessee has purchased the components vide import declaration form Nos. UMA/319419, 25, 383, 346686, 85 for Rs. 1,72,842/-, Rs. 2,68,368/-, Rs. 4,42,400/-, Rs. 9,72,946/- and Rs. 4,37,840/-, but the original copies are not on record and only the photocopies of the duplicate forms are on record, that the assessee have not furnished duplicate copies and these have not been endorsed at the check post barrier, as has been mentioned by the Incharge of the check post and, therefore, the assessee have contravened Section 28 (a), that this purchase of the assessee has been found recorded in their books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity was 3 M.T. before the specified date i.e. before 07/1/03. This finding of the Commissioner has not been challenged by the Department. Commissioner in para 4.3 of the same order has also given the finding that the capacity after 07/1/03 was 4.1 M.T. and this fact had also been verified by the Range Superintendent whose report has been endorsed by the Assistant Commissioner, Central Excise, Dehradun. On the basis of findings in para 4.2 and 4.3 of the order dated 20/8/08, the Commissioner, in para 4.4 of this order given a finding that the production capacity of the appellant increased from the earlier 3 M.T. during the period prior to 07/1/03 to 4 M.T. during the period after 7/1/03. The only basis for denial of the exemption benef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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