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2010 (7) TMI 586 - CESTAT, NEW DELHICompounded rates - Annual production capacity - Annual production capacity is lower than the base year annual production capacity - The dispute is, whether the reduced capacity of production should be adopted or the base year production capacity should be deemed to be the capacity for this period - The order of the Larger Bench is to the effect that when there is no change in parameters during a particular period and the determination of production is lower than the base years’ production, then the base years’ annual production is the deemed production of the current year. The Rule 4 clearly envisages that when there are changes in parameters, the Revised production capacity should be given effect to. Rule 5 prescribing deemed production capacity for a period has no reference to re-determining annual production capacity as per Rule 4. The Rules envisages intimation by the manufacturer about proposed changes of parameters by giving notice of 30 days and seeking permission for such changes - The appellants have intimated the closure of factory and after completing the change of parameters informed the department - Therefore, there is no justification for not giving the benefit of re-determined annual production capacity.
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