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M/s Bhagyalaxmi Steel Rolling Mills Versus Commissioner, C. Ex. & S. Tax, Ahmedabad-II

2016 (5) TMI 839 - CESTAT AHMEDABAD

Demand of short paid duty - Unit closed from January 1998 to March 1998 - Discharged duty under Section 3A of Central Excise Act, 1944 read with Rule 96ZP of erstwhile Central Excise Rules, 1944 - Held that:- since the applicant exercised their option to discharge duty under Rule 96ZP(3), therefore, the period of closure of factory/non-production in our view is immaterial. Therefore, by following the Judgment of Hon'ble Supreme Court in the case of Commissioner of C.Ex. & Customs Vs. Venus Casti .....

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Bhagwati Steel Rolling Mills Vs.CCE [2015 (11) TMI 1172 - SUPREME COURT], penalty and interest under Rule 96ZP ibid cannot be sustained. - Appeal disposed of - Appeal No.E/2187/2005-DB - Order No. A/10384/2016 - Dated:- 4-5-2016 - DR. D.M. MISRA, MEMBER (JUDICIAL) AND MR. P.M. SALEEM, MEMBER (TECHNICAL) For the Appellant: Shri Aditya Tripathi, Advocate For the Respondent: Shri T.K. Sikdar, A.R. ORDER PER: DR. D.M. MISRA Heard both the sides. 2. This is an appeal is filed against the OIO No.177 .....

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1998; also issued with two more demand notices dt.08.03.1999 and 31.05.2000. On adjudication, the learned Commissioner has confirmed the demand against the Show Cause Notice dt.29.07.1998 imposed penalty of ₹ 10,000/- and directed recovery of interest; however he has dropped demands raised under the other two Show Cause Notices. Aggrieved by the said Order in dropping the demands, Revenue filed appeal before this Tribunal which was decided against Revenue reported in 2014 (314) ELT 721 (T .....

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Supreme Court in the case of UOI Vs Supreme Steels And General Mills - 2011 (133) ELT 513 (S.C.). However, he has fairly submitted that during the period under dispute they had exercised option to pay duty under Rule ZP(3) of erstwhile Central Excise Rules,1944. Further, he has submitted that in any case, Penalty and interest cannot be imposed in view of the judgment of Supreme Court in the case of Shree Bhagwati Steel Rolling Mills Vs.CCE, 2015 (326) ELT 209(SC) 5. Per contra, the learned Auth .....

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r, he has submitted that the Hon'ble Supreme Court following the ratio laid down in Venus Casting s case has observed in Supreme Steels And General Mills case that once the assessee exercises option to discharge duty on lump sum basis by following the procedure laid down under Rule 96ZP(3), then he cannot be permitted to discharge duty on actual production basis and eligible to the benefit prescribed under Sub. Sec(4) of Sec. 3A of CEA,1944 in the same Finanacial year. 6. We find that the le .....

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tember, 1997 to the 31st day of March, 1998 or any other financial year, as the case may be, and latest by the 10th of each month, pay a sum equivalent to 1/12th of the amount calculated at the rate of ₹ 300/- multiplied by the annual capacity in metric tonnes, as determined under sub-rule (3) of rule 3 of the Hot re-rolling Mills Annual Capacity Determination Rules, 1997, and the amount so paid shall be deemed to be full and final discharge of his duty liability for the period from the 1s .....

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t under proviso to sub-section (3) of sub-section (4) of Section 3A of Central Excise Act, 1944. In the present case, since the applicant exercised their option to discharge duty under Rule 96ZP(3), therefore, the period of closure of factory/non-production in our view is immaterial. We are fortified by the judgment of Hon'ble Supreme Court in the Venus Steel Castings case(supra), wherein their Lordships Observed as: 10. The schemes contained in Section 3A(4) of the Act and Rule 96ZO(3) or .....

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