1999 (7) TMI 205 - AT - Central Excise

Summary

Issues:
1. Confirmation of duty liability by the Commissioner
2. Stay petition for recovery of duty liability
3. Redetermination of duty liability in terms of Section 3A(4) of the Central Excise Act, 1944
4. Adjustment of excess duty paid by the appellants
5. Payment of duty for clearances made during a specific period
6. Direction to deposit a sum for compliance and redetermination of duty liability

Analysis:

1. The Commissioner confirmed a duty liability of Rs. 30 lakhs against the appellant for the period April 1998 to September 1998. The Tribunal had set aside the Commissioner's order and directed redetermination of duty liability in terms of Section 3A(4) of the Central Excise Act, 1944. The appellant contended that the duty liability cannot be sustained without redetermination as per the Tribunal's orders in related cases.

2. The appellant claimed to have paid excess duty of Rs. 35,88,232.00 based on the original capacity determination by the Commissioner. They argued that this amount should be adjusted in the redetermination of duty liability based on actual production, as per the Tribunal's previous orders. The total duty liability payable by the appellants was calculated, and it was pointed out that the duty liability for the induction furnace alone would be virtually nil.

3. The appellant agreed to pay the duty of Rs. 86,871 and requested the Commissioner to pass a fresh order based on the redetermination of duty liability as directed by the Tribunal in previous orders. The respondent, however, highlighted that the appellants had cleared their production during the period in question without paying any duty, emphasizing the obligation of duty payment even on actual production.

4. The respondent argued against the appellant's self-adjustment of excess duty paid without proper redetermination by the Commissioner. It was emphasized that any excess payment could only be adjusted upon redetermination by the Commissioner, and the appellants could not make adjustments on their own. The respondent suggested that the appellants should pay a suitable sum for the clearances made during the specified period.

5. The Bench directed the appellant to deposit a sum of Rs. 7.5 lakhs within three months, considering the approximate duty amount involved in the clearances of excisable goods. The Commissioner was tasked with determining the duty liability of the appellants in accordance with law after the compliance with the deposit directive. The appellant's request to adjust the excess duty paid against the duty liability was left for examination by the Commissioner.

6. The appeal was disposed of in the mentioned manner, leading to the disposal of the Stay petition as well. The judgment addressed the issues of duty liability confirmation, redetermination, adjustment of excess duty, and compliance with payment directives, ensuring that the duty liability would be determined as per the legal provisions and Tribunal's orders.