M/S. Hans Steel Rolling Mill vs Commnr. Of Central Excise, Chandigarh

The Supreme Court addressed whether Section 11A of the Central Excise Act, 1944 applies to the recovery of amounts due under the compound levy scheme for Hot-Re-rolling mills. The Court held that the recovery mechanism under Section 11A is not applicable in cases governed by the Compound Levy Scheme as per Section 3A and Rule 96ZP of the Act. Consequently, the demand notice issued under Section 11 was set aside, affirming the Tribunal's decision to remand the matter for re-determination of annual capacity.