9911796707
TMI Blog2009 (1) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... ds not actually manufactured can be levied and collected Under Rule 96ZO of the Central Excise Rules, 1944 when the duty is levied under Section 3 of the Central Excise Act, 1944 on the goods produced or manufactured. (2) Whether duty of excise can be levied and collected simply on account of failure of Applicant to strictly comply procedural requirement. 2. At the hearing, we find that the aforesaid questions have already been answered in favour of the Assessee and against the revenue by two Division Benches of this Court in the cases of Commissioner, Central Excise Commissionerate, Ludhiana v. M/s Shiv Durga Ispat, Ludhiana (Punjab) (CEA No.63 of 2006, decided on 27-10-2006) and Commissioner of Cental Excise, Ludhiana v. Ralson India Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re or on the date of closure. (b) the manufacturer shall intimate the reading of the electricity meter to the Assistant Commissioner of Central Excise, immediately after the production in his factory is stopped along with the closing balance of stock of the ingots and billets of non-alloy steel; (c) the manufacturer, when he starts production again, shall inform in writing about the starting of production to the Assistant Commissioner of C.E. with a copy to the Superintendent of Central Excise, either prior to the date of starting production or on the date of starting production; (d) the manufacturer shall on star ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h a delay of two days (P-5). 5. The petitioner filed an appeal before the Tribunal and the claim made by the Tribunal was rejected by sustaining the ground taken in the order in original. The view of the Tribunal is discernible from the following portion of the operative para of its order dated 9-3-2001, which reads as under :- It is not in dispute that the electricity meter reading was not intimated by the Appellants on 16-1-98 when the production was stopped. The subsequent intimation of the electricity meter reading cannot be treated as compliance with the requirement of Rule 96ZO(2)(b). Accordingly the Commissioner was justified in dis-allowing the abatement for the period 16-1-98 to 31-1-98. 6. We have heard learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f their note dated 17-1-1998. The reading noted by the Range staff is 799370 KWH on 17-1-1998. On 19-1-1998, the Assessee had also intimated the meter reading to be 799365 KWH as on 16-1-1998. When the aforesaid reading is compared with the reading intimated by the petitioner on 19-1-1998, as on 16-1-1998 at 18 hours, the unit is shown to have consumed only five units. It is not possible to contemplate that with five units the petitioner could have indulged in any production. There was no question of any production and consequently, no duty could be imposed. Therefore, we find that the answer to the questions posed has to be in favour of the Assessee-petitioner and against the revenue. The opinion on the aforesaid questions has already been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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