2002 (11) TMI 706 - AT - Central Excise

Summary

Issues:
1. Dispute over annual production capacity determination under Hot Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997.
2. Disagreement on the effective date for re-determination of annual capacity.

Analysis:
1. The appellant, a company manufacturing non-alloy steel bars and rods, challenged the Commissioner's order on annual production capacity. The Commissioner, in de novo proceedings, calculated the 'd' factor as an average of 160 mm and 169 mm, fixing the Annual Capacity of Production at 164.5 mm. The appellant argued that the 'd' factor specified in the Rules is 160 mm, and the Commissioner exceeded his authority by averaging two measurements. The Tribunal agreed, stating that the 'd' factor should be 160 mm, not 164.5 mm, as per the Rules.

2. The second issue revolved around the effective date for re-determining the annual capacity. The Verification Report was dated 12-10-99, but the appellants claimed they had informed the Revenue of parameter changes effective from 1-6-99. Despite the Tribunal's earlier direction to re-fix the capacity from the actual parameter change date, the Commissioner set the date from the verification. The Tribunal ruled in favor of the appellants, emphasizing that the capacity should be re-fixed from 1-6-99, the actual parameter change date, not from the verification date.

In conclusion, the Tribunal upheld the appellant's arguments, determining the 'd' factor as 160 mm and setting the effective date for re-determining the annual capacity at 1-6-99. The impugned order was set aside, and the appeal was allowed accordingly.