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2018 (1) TMI 1161 - AT - Central ExciseValuation - processing of Cotton Fabrics and Man-Made Knitted Fabrics - annual capacity based production - inclusion or exclusion of length of gallery/closed while re-determining the Annual Capacity Production - Held that: - The contention of the appellant that the determination of actual production was done as per their statutory right under sub-section (4) of Section 3A and not in terms of option exercised by them is complete misreading of clauses of Section 3A and aforesaid notification. The said notification has been issued under sub-section (3) of Section 3A to specify the rate of duty. Accordingly, the rates of duty have been specified. The notification envisages two situations wherein the processor who wants to retain option of re-determination of duty or forgoes the re-determination of duty payable on the basis of actual production. Hence, the notification is to be read in conjunction along with Section 3A and not in competition with any sub-section of 3A. Since the appellant vide their declaration dt.3.4.2000 had retained their option for re-determination of duty payable on the basis of actual production, the adjudicating authority has correctly upheld the demand - demand of duty upheld. Liability of interest - appellant were a sick company under BIFR - Held that: - since the appellant were a sick company, the interest liability cannot be imposed on the appellant. Appeal allowed in part.
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