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2009 (1) TMI 282 - HC - Central ExciseWhether the excise duty on goods not actually manufactured can be levied and collected Under Rule 96ZO of the Central Excise Rules, 1944 when the duty is levied under Section 3 of the Central Excise Act, 1944 on the goods produced or manufactured? Whether duty of excise can be levied and collected simply on account of failure of Applicant to strictly comply procedural requirement? Held that:- In the instant case, it has not been disputed that the unit was lying closed. The Range staff has visited the unit and confirmed the closure on 17-1-1998, which was in response to the intimation given by the petitioner on 16-1-1998. The meter reading has been noted by the Range staff which is evident from the reading of their note dated 17-1-1998. The reading noted by the Range staff is 799370 KWH on 17-1-1998. On 19-1-1998, the Assessee had also intimated the meter reading to be 799365 KWH as on 16-1-1998. When the aforesaid reading is compared with the reading intimated by the petitioner on 19-1-1998, as on 16-1-1998 at 18 hours, the unit is shown to have consumed only five units. It is not possible to contemplate that with five units the petitioner could have indulged in any production. There was no question of any production and consequently, no duty could be imposed. Therefore, the answer to the questions posed has to be in favour of the Assessee-petitioner.
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