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2019 (2) TMI 842 - AT - Central ExciseValuation - Compounded Levy Scheme - Annual Capacity of Production - section 3A of the Central Excise, Act, 1944 - demand of differential duty - Held that:- Government notified the Scheme of Compounded Levy Scheme under Section 3A for induction of furnace units as well as re-rolling mills w.e.f. 1/09/1997. In terms of this scheme, the Annual Capacity of Production is required to be fixed by the Jurisdictional Commissioner and the assesses were required to dis-charge their duty liabilities in terms of such production capacity fixed. In those cases, where the assesses are of the view that the ACP fixed in terms of the scheme is unreasonably high and the Actual Production is far lower, Section 3A (4) provides for the assessee to file an application to the Commissioner for re-fixing the ACP. Such application was moved by the appellant through their letter dated 15/07/1998 against the capacities fixed by the Commissioner vide this order dated 28/4/1998. The present proceedings is against the order passed by Commissioner in the denovo proceedings. However, it is seen that he has re-fix the capacity as done in his initial order dated 28/04/1998. He has declined to consider the plea made by the appellant to re-fixe the capacity keeping in view of the actual production figures recorded in RG-1. After considering the various factors claimed to be impacting production of both ingots as well as the rolled products, we are of the view that the fixing of Annual Capacity of Production simply on the basis of the formula will be unfair to the appellant. As such, the capacity is required to be re-determined as per the provisions of Section 3A (4) - The Commissioner is required to re-fix the capacity of production after considering the evidence produced by the assessee in support of his claim for lower production- appeal allowed by way of remand.
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