TMI Blog2010 (6) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were working under Compounded Levy Scheme in terms of Section 3A of Central Excise Act, 1944 and paying Central Excise duty @ Rs. 1.5 lakh per chamber, per month as per the provisions of Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998. 2. The Commissioner of Central Excise granted permission to erect an additional chamber vide letter dated 7-6-99 and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise duty amounting to Rs. 3,00,000/- as against Rs. 5,25,000/- (3 chambers for the first fortnight and 4 chambers for the second fortnight) payable during the month and thereby they short paid duty amounting to Rs. 2,25,000/-. 5. The lower authorities have confirmed the demand for differential duty of Rs. 5,55,000/- with interest and also have imposed equal amount of penalty. 6. Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rule 3 of Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 is ultra vires and therefore the demand is not sustainable. He also cited several other decisions where similar view has been taken which are as under : (i) 2006 (205) E.L.T. 631 (Tri.-Chennai) - Raji Thangam Textiles Ltd. v. CCE, Coimbatore. (ii) 2007 (213) E.L.T. 486 (S.C.) - CCE, Gujara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visited or they have not verified, it has to be held that the assessee s claim has to be accepted. The demand stands confirmed on the ground that duty was required to be paid in the beginning of the month and abatement, if any, was to be claimed separately and therefore appellants are at fault in not paying the duty during the relevant time. In view of the fact that the relevant rules have been st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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