Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2012 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (2) TMI 441 - AT - Central ExciseDuty demand - Scheme for excise duty liability based on installed Annual Capacity - Appellant opted for duty payment - Held that:- if a manufacturer claims abatement for not working during a short period as provided in Section 3A(3) conditions prescribed have to be followed. Such conditions involve giving advance intimation taking meter reading for electricity supply etc. to make sure that the manufacturer does not actually do manufacturing activity during such period. However there are no such conditions prescribed in sub-section (2). Apparently the appellant has tried to take benefit of this loop-hole by just sending intimation that they were surrendering the certificate. The Authorised Representative for Revenue submits that it is this dubious method that the Appellant has adopted to evade excise duty. As may be seen the adjudicating authority accepted that the factory was closed during Sep. 1997 and Oct. 1997 and also in March, 1998. The First Appellate authority has not accepted that the factory was closed during the period because intimations regarding last reading for electricity supply was not intimated and has confirmed duty liability for the entire period of Sep. 1997 to March, 1998. The Commissioner (Appeals) has accepted the contention of Revenue that the request for surrender of registration was an eye-wash and they were actually producing goods during the entire period. Appellants did not do manufacturing activity during the period 2-9-1997 to 28-11-1997 and also from 28-2-1998 to 31-3-1998. So I hold that the duty liability determined in the adjudication order to be proper - However penalty not imposable - Decided partly in favour of assessee.
|