ARUN SMELTERS LTD Vs. CUSTOMS EXCISE AND SERVICE TAX APPELLATE TRIBUNAL; COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Civil Miscellaneous Appeal is directed against the Final Order Nos.614 and 615 of 2008, dated 24.06.2008, passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), South Regional Bench, Chennai, 1st respondent herein.

(2.) Facts leading to the appeals are that the appellant is engaged in the manufacture of non-alloy steel ingots and billets, falling under Chapter Sub-Heading No.7206.90 of the Schedule to the Central Excise Tariff Act, 1985, covered under Section 3A of the Central Excise Act, 1944, during compounding levy scheme. Two show cause notices were issued to the appellant on 24.03.1999, one for recovery of duty for the month of September, 1998 and the other, for recovery of duty for the period, from October, 1998 to February, 1999, both in terms of annual capacity of production and the consequential monthly duty liability fixed by the jurisdictional Commissioner. Both the notices also proposed penalty under Rule 96ZO(3) of the Central Excise Rules, 1944 (hereinafter referred to "the Rules"). Proposals were contested.

(3.) For the show cause notice issued for recovery of duty for the period from October, 1998 to February, 1999, the Commissioner of Central Excise, vide Order-in-Original No.15/CLS/2001-Tech, dated 27.03.2001, confirmed the demand of duty, to an extent of Rs.16,06,507/-, after dropping the demand for the earlier period, by granting abatement of duty during the period of closure of the furnace. The said order has been challenged in Appeal No.E/632/2001 before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), South Regional Bench, Chennai, 1st respondent.