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2016 (5) TMI 304 - CHHATTISGARH HIGH COURTWhether the Tribunal was justified in making proper determination of the annual production capacity of the Respondent/Assessee plant in conformity with relevant rules applicable for such re-determination and whether impugned re-determination made by the Tribunal can be said to be in conformity with the law laid down by the Supreme Court in the case of Commissioner of Central Excise v. Doaba Steel Rolling Mills [2011 (7) TMI 10 - SUPREME COURT OF INDIA] - Held that:- Section 3A(2) of the Act empowers the Central Government to charge excise duty on the annual production capacity to be determined in the manner prescribed under Rule 3. If a manufacturer proposes to make any changes in installed machinery which would affect the annual production capacity, Rule 4(2) required it to be intimated one month in advance, written approval obtained before making the change from the Commissioner Central Excise who would then determine the date from which the changed installed capacity shall be deemed effective. By deeming fiction, subject to compliance with Rule 4(2), the actual production, if less in the subsequent year, was to be determined for Excise duty on basis of actual production for the year 1996-1997. Any changes made in the annual production capacity on 30-7-1997, according to the respondent itself was communicated to the department after insertion of the amended Rule 5. The annual production capacity for chargeable excise duty in the present case relates to the period 1997-98. The Tribunal held that the actual production figures for the year 1996-97 was not relevant without noticing or taking into consideration Rule 5 brought into effect from 1-9-1997 by notification dated 30-8-1997. The finding was therefore completely perverse. Therefore, the order of the Tribunal is held to be not sustainable and is set aside. - Decided in favour of revenue
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