9911796707
TMI Blog2010 (7) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... of hot rerolled products of iron and steel such as MS section and T Iron Angle. They are required to pay the Central Excise duty at compounded rates in terms of Section 3A of Central Excise Act, 1944. The Commissioner vide order dated 27-3-98 determined the annual capacity of production as 2672.75 MT/Annum. On 7-10-98, the appellant intimated the Commissioner about the shut down for the purpose of modification of various parameters; they informed the Commissioner about the completion of modification work vide their letter dated 27-11-98 which was received in the Commissioner's office on 31-11-98. It appears from the record that there was verification on 4-12-98 and 28-12-98 by Central Excise officers about the changes made. Commissioner vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Commissioner vide order dated 24-12-99 has determined the capacity for the period 24-12-98 to 31-3-99 as 880.5 MT/Annum. However, he did not give effect to the same on the ground that the same was lower than the ACP for the base year. In pursuance of the Tribunal's order, the Commissioner was required to consider the applicability of the decision of the Larger Bench of the Tribunal in the case of Sawanmal Shibumal Steel Rolling Mills cited supra. Since giving intimation on 7-10-98 regarding closure for the purpose of parameters is not in dispute, Commissioner should have allowed the benefit of 880.5 MT for the period from 27-11-98 or at least from 31-11-98 when the intimation was duly received by the Commissioner. When the predecesso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e base year annual production capacity. The dispute is, in such a situation, 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. In my opinion, 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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