- (1.) This application is preferred against the order of the Customs, Excise & Gold (Control) Appellate Tribunal(CEGAT) dated 28.10.2002 passed in Appeal No.ER 307/2001, by which CEGAT reduced the penalty amount imposed under rule 96ZO(3) from Rs.83,87,000/- to Rs.40,00,000/-.
(2.) The respondent-assessee is the manufacturer of M.S Ingot/Billets falling under chapter, sub-heading 7206.90 of Schedule to CETA, 1985. The said goods were notified for the purpose of levy of duty of excise under the provisions of section 3A of Central Excise Act, 1944, based on Annual Capacity of Production (ACP) in the manner as prescribed under the provision of Rule 96ZO of Central Excise Rules (CER). Sub-rule 1 of Rule 3 of the Induction Furnace Annual Capacity Determination Rules, 1997 specifies the manner in which the aforesaid ACP is to be determined.
(3.) Based on the declaration submitted by the assessee, the Commissioner, Central Excise, Jamshedpur, vide his order dated 23.3.1998, fixed the ACP as 9600 MT in respect of one furnace of the assessee. Since the assessee opted, vide its letter dated 11.9.1997, for payment of duty on the said goods under the provision of sub-rule 3 of Rule 96ZO of CER'44, the assessee was required to pay duty @ Rs.5,00,000/- (Rs.five lakhs) only per month. In March, 1999, the assessee installed another furnace. The Commissioner, Central Excise, Jamshedpur, vide his order dated 5.8.1999, determined ACP in respect of another furnace as 9600 MT. Since the assessee had opted for discharge of duty liability under the provisions of Rule 96ZO(3), the assessee was required to pay Rs.10,00,000/- (Rs.ten lakhs) in two instalments for full and final discharge of its duty liability for month.;