9911796707
TMI Blog2001 (12) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... is appeal, filed by M/s. Raghuveer Metal Industries Ltd., is whether they are eligible to discharge duty liability on M.S. ingots on the basis of actual production in terms of sub-section (4) of Section 3A of the Central Excise Act from the very beginning. 2. Shri K.K. Anand, learned Advocate, submitted that the appellants were initially manufacturing alloy steel ingots; that from 1-7-99 they sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) provides for fixation of annual capacity on actual production basis if the actual production is less than the capacity determined under the provisions of Capacity Determination Rules; that there is no bar in the provisions in opting to pay duty on the basis of actual production from the very beginning. The learned Advocate referred to the decision in the case of CCE v. Venus Castings (P) Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner to re-determine the capacity on actual production basis. 3. Countering the arguments, Shri P.K. Jain, learned SDR, submitted that the actual production figures would be available only after a manufacturer has started his manufacturing activity and after lapse of some time thereafter; that as the appellants started manufacture of impugned products from 1-7-1999 only, the question of fixing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction shall be deemed to be the annual production of such goods by such factory. Sub-section (3) provides as under :- "The duty of excise on notified goods shall be levied, at such rate as the Central Government may by notification in the official Gazette specify, and collected in such manner as may be prescribed." 5. In exercise of powers conferred by sub-section (2) of Section 3A, the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determination of capacity of production and (ii) actual production. How can a factory which has not commenced production can claim determination of capacity on the basis of actual production. It is not in dispute that the appellants commenced production of M.S. ingots of non-alloy steel only from 1-7-1999. As there is no actual production available, the question of determination of annual capacity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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