SHUBH TIMB STEEL LIMITED Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) APPELLANT filed this appeal against the adjudication order passed by the Commissioner of Central Excise. The brief facts of the case are that the appellant are engaged in the manufacture of Non -Alloy Steel Ingots and were working under the compounded levy scheme. The appellant were to pay duty as per the determination made by the Commissioner of Central Excise under Section 3A of the Central Excise Act. The duty so determined was not paid by the appellant for the period 4/99 to 6.12.99. Show cause notice was issued for demanding of duty and imposition of penalty. The contention of the appellant is that the show cause notice was issued after six months under the proviso to Section 11A of Central Excise Act and demand is time barred.

(3.) WE find that this issue whether the time limit prescribed under Section 11A of the Central Excise Act is eligible under the compounded levy scheme is already settled by the larger bench of the Tribunal in the case of Mohinder Steels Ltd., v. CCE, Chandigarh - and the Tribunal held that the time limit prescribed under Section 11A is not leviable in respect of demand under the compounded levy scheme. In these circumstances, we find no merit on the time bar as the appellant are not paid duty as determined by the Commissioner of Central Excise under Section 3A of the Central Excise Act. Therefore, the demand of duty is upheld, however, taking into facts and circumstances, the penalty is reduced to Rs. 1 lakh. Otherwise impugned order is confirmed appeal is disposed of as indicated above.