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2014 (12) TMI 904 - HC - Central ExciseDetermination of Annual Capacity Production - respondent/assessee is engaged in the manufacture of hot-rolled products of Iron and Steel - Compounded Levy Scheme of Rule 96ZP of the Central Excise Rules, 1944 read with Section 3A of the Central Excise Act, 1944 - imposition of interest and penalty - Held that:- Rule 5 states that in case the annual capacity determined by the formula in sub-rule (3) of rule 3 in respect of a mill is less than the actual production of the mill during the financial year 1996-97, then the annual capacity so determined shall be deemed to be equal to the actual production of the mill during the financial year 1996-97. Hence Rule 5 will have to be taken into consideration for determination of the Annual Capacity Production even when there is any change in the installed machinery or any part thereof is intimated to the Commissioner of Central Excise in terms of Rule 4(2) of the said Rules. Rule 5 of the 1997 Rules will be attracted for determination of the annual capacity of production of the factory when any change in the installed machinery or any part thereof is intimated to the Commissioner of Central Excise in terms of Rule 4(2) of the said Rules - In the light of the decision of the Supreme Court reported in [2011 (7) TMI 10 - SUPREME COURT OF INDIA] on remand, the competent authority has to determine the same. As a consequence, if duty, penalty and interest is leviable, the competent Authority is entitled to proceed further as provided under the relevant provisions of the Rules by following the procedure prescribed. It is needless to say that opportunity will be given to the assessee so as to avoid an allegation of violation of principles of natural justice. - Appeal disposed of.
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