New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 523 - ANDHRA PRADESH HIGH COURT

2016 (1) TMI 523 - ANDHRA PRADESH HIGH COURT - 2015 (324) E.L.T. 286 (A. P.) - Determination of annual capacity of production (ACP) - type of furnace - ‘batch type’ or ‘pusher type’ - manufacturing of Hot re-rolled products of non-alloy steel viz., M.S. Flats, angles, bars and rods. - The assessee though initially filed declaration under the statute describing the furnace as ‘pusher type’, based on which monthly duty liability was fixed at ₹ 78,625/-, subsequently realizing the mistake tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hnical aspect that the subject furnace of the assessee is ‘pusher type’ and rejected the claim of the assessee.

Based on certificate of NISST and the material on record, the contention of the learned counsel for the assessee that the mill is low speed mill and the authorities treating it as high speed mill, fixed higher annual production capacity and demanded higher duty, cannot be countenanced and the judgments cited in this regard are not applicable to the facts of the case. - Decid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-alloy steel viz., M.S. Flats, angles, bars and rods. It initially filed declaration under the statute for determining unit s annual capacity of production (ACP), describing its furnace as of pusher type and accordingly, based on verification, the Commissioner, by proceedings dated 30-8-1997, fixed the ACP at 1592 mts. per annum and imposed duty liability at ₹ 19,900/- per month. Again based on a revised declaration by the assessee dated 10-9-1997, the Commissioner determined the ACP as 31 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lly filed declaration under the statute describing the furnace as pusher type , based on which monthly duty liability was fixed at ₹ 78,625/- by the order of the Commissioner dated 16-9-1997, subsequently realizing the mistake that the furnace is batch type and not pusher type , filed revised declaration along with Chartered Engineer s Certificate for redetermination of duty liability. Based on the report of the Range Superintendent dated 19-5-1998, the Commissioner, by order dated 27-10-1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a presence of pushing mechanism by which material is charged into furnace and as the report of the said Superintendent who had inspected, was silent with respect to the second test, as to whether there is any movement of materials inside the furnace, while the furnace is heating the same, set aside the Order-in-Original No. CEX- 29/98, dated 27-10-1998 passed by the Commissioner and remitted the matter back for de novo consideration after giving opportunity to the assessee. The Commissioner was .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

see. Accordingly, a team of officers of NISST visited the furnace of the assessee on 30-10-1999 and on verification, issued certificate dated 8-11-1999 stating that the furnace of the assessee is pusher type . The said report was made available to the assessee and eventually, based on the certificate of NISST dated 8-11-1999, the Commissioner concluded that the furnace of the assessee is pusher type and rejected by the claim of the assessee by Order (Original) No. C. Ex. 06/2000 dated 10-2-2000. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a pusher mechanism, by which the charged material is pushed into the furnace and (2) that there should be movement of the material inside the furnace while heating is on. The case of the appellant, as stated above, is that their furnace was having a screw pusher mechanism by which material is charged and there is no contrived movement of the material by way of conveyor belt or chain in the furnace of the appellant s factory and hence the furnace of the appellant has to be treated as batch type o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the finding that the furnace is of pusher type is not sufficient to determine the annual production capacity of a mill under Hot Re-rolling Mills Annual Capacity Determination Rules, 1997 and it has to be further examined as to what is the type of the mill that is installed in the factory and if the mill is slow speed mill, then the furnace cannot be held to be having pusher type furnace as the same cannot be installed for a low speed mill. He stated that the mill of the assessee is low spe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

E.L.T. 175 (Tri.-Del.) and V.V.S. Concast Ltd. v. Commissioner of Central Excise, Allahabad - 2002 (139) E.L.T. 81 (Tri.-Del.). 4. The learned Standing Counsel for the Central Excise, supporting the impugned order of the Tribunal, sought to dismiss the appeal. 5. This court admitted the appeal to consider the following questions of law : 1. Whether the order dated 23-8-2004 passed by the Hon ble CESTAT upholding respondent order bearing No. CS.06/2000, dated 10-2-2000 determining the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for levying monthly liability. For this, the authority below had relied on the certificate dated 8-11-1999 issued by NISST. The said certificate was issued by the NISST, after due verification of the furnace of the assessee in its presence and also in the presence of Central Excise Range Officer and also the Manager of the NISST. The conclusions in the said certificate, which are based on technical observations, are extracted as under for better appreciation : 1. The observation No. 12 clearly i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

after affording personal hearing and as the assessee has not lead any rebuttal evidence in the form of any Chartered Engineer s Certificate, the authority below has categorically recorded finding on technical aspect that the subject furnace of the assessee is pusher type and rejected the claim of the assessee. 8. Further from the material on record, it could be seen that the primary authority has not only taken the report of the NISST, but also examined the annual production based on the d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

emsp;A study of actual production by the assessees vis-à-vis capacity determined during 1997-98 and 1998-99 shows that actual production always exceeded the production as determined under the rule; 30. Assessees states that there is no mechanical contrivance to move the material like conveyor belt or chain and no continuity of the material as well as the movement of hot material inside the furnace and no automatic mechanism to take out the material from the furnace and also states th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ees letter dated 14-12-1999 has an enclosure in which Mr. R.P. Bhatia, Chartered Engineer and Zonal Chairman of Steel Re-rolling Mills Association of India, Mandi Gobindgarh has certified that the most of steel re-rolling mills working in country are low speed mills and further explained that the small sized units have low furnace capacity which are box/batch type. But it is a general statement and nowhere it is mentioned that Sri R.P. Bhatia has physically inspected the mill of the assessee to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version