TMI Blog2005 (4) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... al terms, is on the same lines as that for the Induction Furnace units and that therefore the explanation on some of the common features are the same as those contained in Circular No. 325. This does not tantamount to saying that all the features of the induction furnace scheme were to be incorporated into the hot rolling mill scheme. The appellant's contention that the second mill was set up after the approval of the Commissioner is of no consequence. The approval granted by the Commissioner did not in any way affect the assessment required to be made in accordance with the Rules. Thus the appeal is dismissed - 2415 of 2005 - - - Dated:- 5-4-2005 - Ruma Pal and C.K. Thakker, JJ. [Judgment per : Ruma Pal, J.]. - Leave granted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the capacity of each rolling mill in the unit". 4.Prior to 1st September 1999, the appellant had one heating furnace and the appellant's ACP was fixed on that basis. The appellant then installed a second furnace but, according to the appellant, there was only one electric motor which meant that the both furnaces could not be operated simultaneously. The appellant notified the change to the Commissioner under Rule 4 of the Rules. According to the appellant, the approval was communicated to the appellant by the Commissioner's letter dated 25th August, 1999 after which the appellant filed a revised declaration on 1st September, 1999. Response was given to this on 17th October 2000 by the Commissioner's office which sought to club the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that despite having two electric furnaces since there was only one motor which was common to both, then in terms of the circular issued by the Board itself the capacity of the higher of the mills should have been taken as the ACP. The second submission is that the appellant had submitted a certificate from the National Institute of Secondary Steel Technology, a Government Institute, which certified that the two mills could not be run simultaneously with the same motor and common flywheel. It is contended that the Commissioner could not discard the opinion of an expert and determine the technical issue on the basis of his own opinion. It was finally submitted that the Commissioner had himself approved the setting up of the second furnace w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the unit would be the sum total of the capacity of each rolling mill in the unit irrespective of the fact that only one mill operated at a time. The language could not be plainer. What the appellant's argument overlooks is that the scheme did not operate on the basis of the actual production but on the capacity of the rolling mills to produce. We, therefore, see no reason to differ with the view expressed by the Commissioner, CEGAT and the High Court. 8.The criticism of the action of the Tribunal in Hindustan Ferodo Ltd. v. Collector of Central Excise - 1997 (89) E.L.T. 16 (S.C.) where the Tribunal had entered into the arena of dispute and in effect given evidence on behalf of the Revenue before itself, would not apply here. The Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.Circular No. 326 also dated 25-7-1997 dealt with the capacity of production of hot re-rolling mills. There is no paragraph in this circular similar to the quoted paragraph relating to the ACP of induction furnaces. Paragraph 18 of Circular No. 326 says that the paragraphs in the circular explain the salient features of Section 3A scheme as applicable to re-rolling mills. It also says that the scheme, in general terms, is on the same lines as that for the Induction Furnace units and that therefore the explanation on some of the common features are the same as those contained in Circular No. 325. This does not tantamount to saying that all the features of the induction furnace scheme were to be incorporated into the hot rolling mill sch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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