2008 (9) TMI 936 - SCH - Central Excise

Valuation - annual production capacity - Held that - petitioner not utilizing furnace to its full capacity is not a ground to assess lower capacity - petition allowed.

Summary

The Supreme Court issued notice on the Special Leave Petition and the prayer for interim relief. No coercive steps shall be taken in the meantime. The Punjab and Haryana High Court's order was challenged, which held that determining annual production capacity of furnace should be based on the capacity of the induction furnace recorded in the supplier's invoice, not on other materials like certificates of Chartered Engineers or sanctioned load of electricity. The High Court also ruled that not utilizing the furnace to its full capacity is not a valid reason to assess lower capacity.