COMMISSIONER, CUSTOMS AND CENTRAL EXCISE, MEERUT-I Vs. M/S AMRIT VARSHA ISPAT (P) LTD. MUNI KI RETI, RISHIKESH

JUDGEMENT

(1.) THIS is an appeal u/S 35G of the Central Excise Act, 1944. The facts leading to the filing of the present appeal is, that the respondent is a company engaged in the manufacture of M.S. Ingots falling under Tariff heading No. 7206.90 of the Central Excise Tariff Act 1985. The respondent company intimated the Commissioner of Central Excise, Meerut about their intention to avail the procedure prescribed under Rule 96ZO(3) of the Central Excise Rules, 1944 (hereinafter referred to as the 'Rules') for full and final discharge of their liability to pay duty on the manufacture of ingots of non -alloy steel under the provisions of 3A of the Central Excise Act, 1944.

(2.) IT transpires that the Commissioner, Central Excise, by an order dated 19th September, 1997 fixed the annual capacity of production of the respondent company under Induction Furnace Capacity Determination Rules, 1997 at 9600 M.T. which was based on the total installed furnace capacity of 3 M.T. On the basis of this assessment, the monthly duty liability of the respondent company came to Rs. 5,00,000/ - and the respondent was liable to pay this duty in two equal installments. The first installment was to be paid by the 15th day of each month and the second latest by the last day of the month.

(3.) AGGRIEVED by the imposition of the penalty, the respondent company preferred an appeal before the Commissioner (Appeals), Central Excise Meerut, who by an order dated 4th June, 2004 reduced the penalty from Rs.67,50,000/ - to Rs. 4,00,000/ - The Revenue, being aggrieved by this order, filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), who by an order dated 27th August 2008, dismissed the appeal and affirmed the order of the Commissioner (Appeals). It transpires that thereafter the Revenue filed an application for rectification which was dismissed by an order dated 3rd December, 2009. The Revenue, being aggrieved by the aforesaid orders, has filed the present appeal u/S 35G of the Central Excise Act, 1944.