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2016 (2) TMI 252 - CESTAT ALLAHABAD

2016 (2) TMI 252 - CESTAT ALLAHABAD - TMI - Duty under the Compounded Levy Scheme confirmed - refusal of payment of duty under normal scheme - Held that:- We hold that under the facts and circumstances, the appellant had not made/expressed option for paying tax for the financial year 1998-99 under the compounded levy scheme. As such, no tax can be demanded under the provisions of Section 3A read with Rule 96ZP(3). We accordingly set aside the impugned order on the issue of abatement also. We hol .....

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is in appeal against order-in-original dated 29.1.2007 passed by the ld. Commissioner, Central Excise, Meerut I, refusing the payment of duty under normal scheme and confirming the duty under the Compounded Levy Scheme for the period June 1998 to November, 1998. 2. This is the second round of litigation. 3. The brief facts of the case are that the appellant being Rolling Mills applied/opted payment of tax under the Compounded Levy Scheme by filing declaration dated 13.8.1997 opting to pay duty .....

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nder Rule 96ZP (3) and as such the appellant has short paid duty of ₹ 39,16,400/-. It is further noticed in para 8 of the impugned order that duty liability was revised with effect from 1.6.98 at ₹ 4,44,475/- per month. Further the case of the appellant is that they never opted to pay duty under Compounded Levy Scheme for the financial year 1998-99. At the same time, they also applied for payment of duty on actual production basis some time in March 1999. Vide order-in-original dated .....

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ter of fact whether they have opted for payment of duty under rule 96ZP(3) for the financial year 1998 - 99 or not. This fact cannot be determined by us as no letter has been discussed under any of the orders produced before us from where it can be inferred whether the appellants had opted for payment of duty under Rule 96 ZP(3) or under Section 3A(4) of the Central Excise Act for the year 1998 -99. Therefore, this fact has to be determined by the Commissioner only. The ld. Advocate appearing fo .....

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s Tribunal the present impugned order-in-original has been passed. Ld. Commissioner has again confirmed the duty and penalty under CLS observing that the appellant vide their letter dated 18.12.98 requested for re- determination of the duty liability under Rule 96ZP(3) on account of change in the machinery in one line i.e. Line 'B'. By necessary implication his request for re-determination shows that the appellant continued their option to pay duty under Rule 96 ZP(3) for the year 1998-9 .....

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rverse and is sought to be set aside. Ld. Counsel further states that proceeding under compounded Levy Scheme have abated with effect from 11/5/2001, when Section 3A was omitted, without saving clause and as such the proceeding in the appellant's case also stood abated and no tax could be demanded by the present impugned order-in-original under CLS. Further the appellant relies on the ruling of the Hon'ble Gujarat High Court in the case of Krishna Processors vs. UOI -2012 (280) ELT 186 w .....

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effect from 11.5.2001 in the absence of saving clause. The High Court further held that proceedings which were pending as on 11.5.2001 even if initiated prior to omission of Rules, would thereafter automatically lapse and no orders could have been passed if they were not concluded at the time of omission of Section 3A. Ld. Counsel also points out that the judgment of Hon'ble High court in Krishna Processors has been followed in several decisions by this Tribunal including Alwar Processors Pv .....

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