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2005 (9) TMI 208 - AT - Central ExciseProduction capacity based duty - HELD THAT:- It is not in dispute that the ACD Rules have been struck down by the High Court in the case of Beauty Dyers [2001 (12) TMI 95 - HIGH COURT OF JUDICATURE AT MADRAS] as ultra vires the Central Excise Act. The Rules, therefore, should be held to have been suffering from the vice of illegality and unconstitutionality right from the day on which they were made. If that be so, the appellants cannot be held to have been lawfully working under Compounded Levy Scheme. It would follow that the determination of ACP by the Commissioner and the procedure laid down for matters such as determination of duty liability, collection of duty, abatement of duty, etc. were all futile exercises. It would suffice to say that the order of the ld. Commissioner is inconsequential. This is the scenario emerging from the judgment of the Hon'ble High Court and there is no escape from it, for the present. In the result, the impugned order is set aside and this appeal is allowed.
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