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2010 (6) TMI 206 - CESTAT, AHMEDABADProduction capacity based duty- The appellants were granted the permission to avail the special procedure as laid down under Rule 96ZA of Central Excise Rules, 1944 for the period from 15-9-97 to 14-9-98 as per the declaration filed by them for the maximum 5 cold rolling machines installed in the factory. However, with effect from 1-2-98, they started paying the duty only on 3 cold rolling machines with a stoppage of two cold rolling machines for which they stated that these two cold rolling machines were stopped as they were very old one and their present condition required higher costs and time for the maintenance consumed more electricity and proportionately higher quantity of raw materials. The appellant sent the letter to the department that the said two machines would not be operated. Held that- It is the case where the two machines in question stopped functioning altogether w.e.f. 1-2-98 onwards and the only fault on the part of the assessee can be said that the same were not dismantled and de-installed. The appellants cannot be held to pay for the same. Set aside the impugned order and allow the appeal.
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