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TMI Blog2002 (9) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ould also have like utility. This part of the reasoning of the Tribunal cannot be said to be illegal or erroneous because the Explanation itself specifies that other equipment attached to a stenter should also be for aiding the process of heat setting or drying of the fabrics. The Tribunal found that a gallery, which is having no fan or radiator attached to it, cannot come within the purview of interpretation as contemplated by Explanation-I. Further, on the basis of the aforesaid amended Rules, the Tribunal negatived the contention raised by the Department that while counting number of chambers in each of the hot-air stenters, the galleries attached to it would be deemed to be one chamber of a stenter. Amended Rules clarify and remove the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of revenue, specify, by notification in the Official Gazette, such goods as notified goods and there shall be levied and collected duty of excise on such goods in accordance with the provisions of this section. (2) Where a notification is issued under sub-section (1), the Central Government may, by rules,— (a) provide the manner for determination of the annual capacity of production of the factory, in which such goods are produced, by an officer not below the rank of Assistant Commissioner of Central Excise and such annual capacity shall be deemed to be the annual production of such goods by such factory; or........" 3.In exercise of the powers conferred by sub-section (2) of Section 3A, the Central Government framed the "Hot Air Stent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 5 is to the following effect :- "Explanation-I. - For the purposes of this notification, a float drying machine or any other equipment of a length 3.05 metres installed in or attached to a stenter for aiding the process of heat setting or drying of the fabrics shall be deemed to be one chamber of a stenter and any fraction of such length shall be computed on pro rata basis." The aforesaid Rules were superseded by the "Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 2000, which came into force from 1st day of March, 2000. In the said Rules, there are no major changes except Explanation-I to Rule 5 which clarifies that the galleries installed in or attached to a stenter shall not be deemed to be one ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch, 2000 making the position clear. It is also to be stated that before framing the said Rules, doubts were raised by various Commissionerates as to whether that the galleries should or should not be included in term 'any other equipment installed in or attached to a stenter'. 8.This is made clear in the Trade Notice dated 27th February, 1999. In the said notice, it is inter alia stated that the issue which required consideration is - whether closed spaces known as 'galleries' on either side of the stenter which are meant mainly for heat-insulation purposes are to be taken into account for purposes of computing the production capacity and number of chambers; and further whether for purposes of capacity determination the length of each cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation-I should also have like utility. 10.This part of the reasoning of the Tribunal cannot be said to be illegal or erroneous because the Explanation itself specifies that other equipment attached to a stenter should also be for aiding the process of heat setting or drying of the fabrics. The Tribunal found that a gallery, which is having no fan or radiator attached to it, cannot come within the purview of interpretation as contemplated by Explanation-I. Further, on the basis of the aforesaid amended Rules, the Tribunal negatived the contention raised by the Department that while counting number of chambers in each of the hot-air stenters, the galleries attached to it would be deemed to be one chamber of a stenter. Amended Rules clarify ..... X X X X Extracts X X X X X X X X Extracts X X X X
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