BHATAPARA STEEL INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants' unit is engaged in the manufacture of Iron and Steel product non -alloy Steel Hot re -rolled product falling under Chapter 72 of the Central Excise Tariff Act, 1985 and the products manufactured by the appellants were covered under Section 3A of the Central Excise Act, 1944 including the financial year 1999 -2000.

(2.) THE Commissioner of Central Excise, Nagpur vide Order -in -original dtd. 31.07.1998 had fixed the annual production of capacity of the appellant's unit at 1138 MT Per annum for the financial year 1998 -99 and determined the duty liability at Rs. 14,225/ - per month. The appellant did not pay the duty so determined during the month of June 1999. August 1999 to December 1999 and January 2000 to March 2000. They were therefore issued a Show Cause Notice proposing recovery of duty amounting to Rs. 71,125/ - and Rs. 56.900/ - alongwith interest at the rate 18% per annum on the aforesaid amount and penalty under Rule 173Q.

(3.) ON adjudication the Assistant Commissioner, Customs and Excise Nagpur confirmed the demand as proposed and also imposed equal amount of penalty, apart from recovery of interest at the proposed rate. The appellant preferred appeal before the Commissioner (Appeals), who in turn upheld the Order -in -original and set aside the appeal.