1999 (6) TMI 75 - AT - Central Excise

Summary

Issues involved: Fixation of Annual Production Capacity of Rolling Mills based on changed parameters and determination of effective date for the application of the changed capacity.

Fixation of Annual Production Capacity: The appeal challenged the order of the ld. Commissioner of Customs & Central Excise which fixed the Annual Capacity of Production of the appellant's mills as 4641 m.t. w.e.f. 9-9-1998, contrary to the capacity found to be 1968 mts based on the parameters. The relevant rule for determining the capacity after a change in parameters was argued to be sub-clause 2 of Clause 4 of Notification No. 32/97-C.E. (N.T.), dated 1-8-1997.

Effective Date for Application of Changed Capacity: The Tribunal found that the relevant clause for consideration of the change in parameters was sub-clause 2 of Clause 4 of Notification No. 32/97, dated 1-8-1997. The new Annual Production Capacity was held to be 1968 m.t., and the effective date for this change was determined based on the correspondence exchanged between the appellant and the Department, with the date of intimation being after 31-8-1998. The Tribunal upheld the effective date of 9-9-1998 as reasonable and did not interfere with it.

Conclusion: The Tribunal allowed the appeal, holding the Annual Production Capacity as 1968 m.ts. w.e.f. 9-9-1998, in line with the relevant notification and the change in parameters.