2000 (6) TMI 347 - AT - Central Excise

Summary

Issues Involved:
The dispute in the appeals before the Appellate Tribunal CEGAT, Chennai revolves around the fixation of the annual capacity of production of Hot Air Stenter, specifically concerning the inclusion of the dimension of galleries (buffer zones).

Issue 1: Inclusion of Galleries in Dimension of Hot Air Stenter
The learned Consultant for the appellants argued that galleries are distinct from the Hot Air Chamber of the Stenter, citing a previous decision by the Tribunal in the case of M/s. Chimanlal Silk Mills (P) Ltd. v. CCE, Hyderabad. He contended that the Commissioner incorrectly included galleries in the dimension of the Stenter, leading to an erroneous determination of annual capacity and an unjust increase in duty liability. Moreover, reference was made to Notification 14/2000-C.E. (N.T.), dated 1-3-2000, which clarified that galleries should not be excluded from the specified length of the Stenter, with the Tribunal holding that this clarification has retrospective effect. As a result, the matter on merits was deemed to be in favor of the assessee, warranting the allowance of the appeals with a waiver of pre-deposit and stay of recovery.

Issue 2: Tribunal's Decision and Rulings
Upon review of the submissions and records, the Tribunal found that the structure and function of galleries differ significantly from the hot air chamber of the Stenter, emphasizing the absence of provisions for blowing hot air in galleries. The Tribunal referenced its prior decision in the case of M/s. Chimanlal Silk Mills (P) Ltd. v. CCE, highlighting that the order impugned lacked a detailed examination of the distinct roles of hot air chambers and galleries, rendering it a non-speaking order. Additionally, in Final Order Nos. 713 & 714/2000, the Tribunal reiterated the exclusion of galleries from the Stenter's dimensions as per the government's notification, emphasizing the retrospective effect of this clarification. Consequently, the Tribunal set aside the impugned orders and remanded the matter for fresh consideration by the original authorities, directing them to consider the explanations provided in the relevant notification.

Final Decision and Conclusion
Based on the settled law established in the aforementioned decisions, the Tribunal concluded that galleries should not be included in the dimension of the Hot Air Chamber of the Stenter. It was affirmed that the orders impugned needed to be set aside, and the appeals were allowed with any consequential relief as per the law. The Tribunal determined that there was no necessity to remand the matter back for reconsideration, as the issue had been conclusively addressed in prior decisions, thereby obviating the need for additional work on the part of the lower authority. Consequently, the appeals were allowed in accordance with the established legal principles.

This comprehensive summary encapsulates the key issues, arguments presented, Tribunal's decisions, and the final outcome of the judgment.