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TMI Blog2001 (11) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 22-8-2000. Subsequently the appellant changed one of the parameters on the basis of which the capacity of the rolling mill, and therefore its annual capacity is determined and applied for re-determination of the capacity. The determination came to 1037.341 kgs. Applying the provisions of Rule 5, the Commissioner said that the annual capacity, being less than the actual production in 1996-97, should be equal to that actual production, which was 2633.205 kgs. Hence this appeal. 2. Rule 3 provides for determination of annual capacity of a steel mill by applying the formula provided in that rule. The formula is an attempt to notionally determine the capacity based on the dimensions and working capacity of the mill, and by taking into acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other words, Rule 5 could not be invoked for applying deemed capacity. This was followed subsequently in number of decisions. Four Benches of the Tribunal in the decisions in Ballary Steel Rolling Mills v. CCE [2000 (39) RLT 701] Doaba Steel Rolling Mills v. CCE [2001 (133) E.L.T. 800 (T) = 2000 (39) RLT 976], Pepsu Steel Rolling Mills v. CCE [2001 (127) E.L.T. 779 (T) = 2000 (41) RLT 88] and Vandana Rolling Mills v. CCE [2001 (130) E.L.T. 321 (T) = 2000 (40) RLT 225] all accepted this ratio applied to the facts before them. A single member of the Tribunal, however, was sceptical about the correctness of the view taken in this decision. He was of the view that Rule 5 was in the nature of a direction that would apply also in case where there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he correctness or otherwise of the decision in Awadh Alloys (P) Ltd. on which we will discuss later, we are totally unable to countenance this proposition. One of the considerations as a result of which the doctrine of precedent evolved is that there must be some amount of certainty in matters of law. Every person should know at any point of time what the law is. In the absence of that he would be unable to proceed to conduct his affair in accordance with law. His legal adviser would, equally be unable to advise him as to the correct position in law. It is primarily to subserve this purpose that the doctrine evolved requiring every Court or Judicial Authority to abide by the decision of a Superior Court in the Judicial Hierarchy. As far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of an appeal can furnish no ground for not following it unless its operation has been suspended by a competent Court. If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws. 7. Therefore, while disapproving the conduct of the Commissioner, we set aside his order as being avowedly contrary to the subsisting decision of the Tribunal. His order is therefore set aside and the appeal allowed. 8. We would like to add that we do not expect of this Commissioner or any other Commissioner, to endorse as correct of any of the decision of the Tribunal. All we say is that the Commissioner should accept and apply the orders of the Tribunal, even when he feels the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in 1996-97 , it is the 1996-97 capacity that should apply. It will now be clear that the determination of initial annual capacity, capacity for part of the year or of annual capacity, or capacity for part of the year as a result in the change of parameter are all regulated by the formula contained in Rule 3. It is this formula that is referred to in Rule 5. Therefore, the annual capacity, either initial or unchanged, that capacity is to be compared with the actual production in 1996-97 and if the latter is greater, has to be applied. 10. We agree that the provisions of Rule 5 are arbitrary. We are not able to perceive any logic for the view that if the capacity determined in accordance with the rules is lower than the actual production o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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