9911796707
TMI Blog2003 (2) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Rules 1944 read with Section 3A of the Central Excise Act, 1944. On the basis of their declaration dated 11-8-97 and the verification made by Central Excise officers, the jurisdictional Commissioner determined the Annual Capacity of Production (in short, ACP) of the appellants provisionally under the Induction Furnace Annual Capacity Determination Rules, 1997 (in short, ACD Rules). Accordingly, the ACP was 8956.80 MTs and the monthly duty liability worked out to Rs. 4,66,500/-. Subsequently, a team of Central Excise officers and an independent expert visited the appellant's factory on 15-1-98 and remeasured the parameters of the induction furnace and, on that basis, the Commissioner redetermined ACP as 10,360.32 MTs. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Commissioner could proceed to determine the ACP on the basis of other relevant materials including any expert opinion. In the instant case, ld. Advocate submitted, the Commissioner straightaway proceeded to determine the ACP under Sub-rule (2) by passing Sub-rule (1) of Rule 3 ibid, which was not permissible. Counsel pointed out that, even after the appellants produced the manufacturer's invoice and certificate of furnace specifications, the Commissioner did not properly examine the same and he rejected the documentary evidence without valid reasons. Referring to technical aspects, ld. Counsel submitted that, as the furnace crucible had an inner surface tapering downward, its top inner diameter should not have been taken for calcul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (available on record) and submitted that the top and bottom cooling coils of heavy steel shell furnaces only served to even out the refractory's thermal gradient and reduce thermal expansion thereby improving the efficiency of the furnace. Thus, DR submitted, the coils had an integral connection with the metal-melting operations in the furnace and, therefore, the height of the coils could not have been excluded from the total height of the furnace for determination of the furnace capacity. The DR pointed out that the manufacturer's invoice which did not mention the capacity or other dimensions of the furnace crucible was of no use to the Commissioner in determining the ACP. The manufacturer's letter dated 31-3-98 stating specifications of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant for this purpose. The Commissioner may, if he so desires, consult any technical authority for this purpose; (3) The annual capacity of production of ingots and billets of non-alloy steel in respect of such factory shall be deemed to be as determined by applying the following formula: - ACP = [TCF] X 3200, where - ACP = Annual Capacity of Production of the Factory producing ingots and billets of Non-alloy steel in metric tonnes; and TCP = Total capacity of the furnaces installed in the factory producing ingots and billets of non-alloy steel in metric tonnes. (4) The Commissioner of Central Excise shall, as soon as may be, after determining, the total capacity of furnaces installed in the factory as also the annual capacity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus it was not possible for the Commissioner to depend upon these documents for ascertaining the TCF. The Commissioner, therefore, took to Sub-rule (2) of Rule 3 of the ACD Rules and determined the TCF on the basis of the parameters of the furnace crucible measured by an independent expert in the presence of the appellants and officers of Central Excise. The Revenue has been able to show that the measurements of the parameters were made to the satisfaction of the appellants. The calculation of the TCF out of the parameters so measured has not been contested in this appeal either. Hence I have to hold that the Commissioner determined the TCF correctly in substantial compliance with the procedure under Rule 3 of the ACD Rules. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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