TMI Blog2016 (5) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... etermined 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t rules applicable for such re-determination? (2) 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 decision reported in (2010) 14 SCC 751 = 2011 (269) E.L.T. 298 (S.C.) (Commissioner of Central Excise v. Doaba Steel Rolling Mills)? 2. Learned Counsel for the Revenue submits that the Tribunal committed gross error in not taking into consideration the amendment made to the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997 (hereinafter called the Rules ) by insertion of Rule 5 by Notification No. 45/97-C.E. (N.T.), dated 30-8-1997 w.e.f. 1-9-1997 in exercise of powers under Section 3A(2) of the Act. The amended Rule 5 specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal does not suffer from any infirmity and calls for no interference. 5. We have considered the submissions on behalf of the parties. 6. 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. 7. Rule 5 was inserted by Notification dated 30-8-1997 w.e.f. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the sense that in a case where annual capacity is determined/redetermined by applying the formula prescribed in sub-rule (3) of Rule 3, Rule 5 springs into action and has to be given full effect to. 25. The principle that a taxing statute should be strictly construed is well settled. It is equally trite that the intention of the legislature is primarily to be gathered from the words used in the statute. Once it is shown that an assessee falls within the letter of the law, he must be taxed however great the hardship may appear to the judicial mind to be. 11. The order of the Tribunal dated 26-4-2000 is held to be not sustainable and is set aside. The Reference is answered in favour of the Revenue and disposed. 12. The order be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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