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2024 (2) TMI 248 - CESTAT AHMEDABADAbatement of duty - Compounded levy scheme - Cold Rolling Machine was dismantled and not in use for manufacture during the disputed period - N/N. 17/2007-CE - HELD THAT:- It is an option given to an assessee engaged in manufacture of stainless steel pattas/pattis to pay duty of excise on the basis of number of Cold Rolling Machines installed for cold rolling of such goods. The appellant had initially requested for permission for use of 3(Nos.) of Cold Rolling machines under the notification. Later, on 22.08.2012 they have issued letter informing the department that one machine is not working and that they are dismantling the same. The department has chosen not to respond to this letter. On 07.08.2013, the present show cause notice has been issued alleging that the notification does not provide for abatement. In fact, the appellant has not requested for any abatement. They have informed the department that they have dismantled one Cold Rolling machine and are using only two Cold Rolling machines for which they discharged the duty. The department has no case that the appellant had not dismantled the Cold Rolling machine or that during the disputed period the appellant was using all three Cold Rolling machines. The duty of excise cannot be demanded on goods which are not manufactured. The notification provides for special procedure to pay/ collect duty in respect of goods manufactured using Cold Rolling machines. The demand of duty during the period when the machine was not used for manufacture of goods is not justified - the demand cannot sustain. For the same reasons, the interest and penalties also require to be set-aside. The impugned order is set aside - The appeal is allowed.
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