TMI Blog1997 (10) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary to refer to the relevant facts. The petitioner is engaged in the business of manufacture of M.S. Cold Twisted Deformed bars. The process involves heating and re-heating furnace and then rolling in the rolling mills. It is a common ground that the goods manufactured by the petitioner are excisable under Tariff Items 7214.90 of the Central Tariff Act, 1985, for short `Tariff Act', and the excise duty is payable under the provisions of the Central Excise Act, 1944, for short `CE Act'. By Section 3A of the Central Excise Act, the Central Government is empowered to levy excise duty on the goods presumed to have been manufactured by virtue of the production capacity of a factory. The Commissioner of Central Excise is the competent authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave declared only the parameters relating to finishing stand of second row only i.e., Mill consisting of S7 to S10. The parameters of the two Rolling Mills have been verified and are furnished as under :- 1st Rolling Mill consisting of 6 stands (S1 to S6) d = 342 mm. n = rpm of the drive 720 rpm i = reduction ratio of gear box and pully system 47 thereof. 2nd Rolling Mill consists of 4 stands (S7 to S10) d = 267 mm. (as against 256 mm. declared by the assessees) n = 720 rpm i = 0.46 From the above it is evident if the parameters declared by the assessees relating to 2nd row are taken into consideration duty payable would be very less as it gives less annual capacity. Further it is to submit that for arriving at the annual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as determined by applying the following formula :- Annual capacity 1,885 x 104 x d x n x i x e x w x no of utilised hours (in metric tonnes) Where d Nominal diameter of the finishing mill in millimetres n Nominal revolutions per minute (RPM on the drive) i Reduction ratio of the gear box w Weight kilogramme per metre of the re-rolled product, the value of `e' in the formula shall be deemed to be 0.30 in case of low speed mills and 0.75 in case of high speed mills." 7. From the above formula, it is clear that the (d) factor is an important factor in determining the annual capacity and that determination fixes the liability for payment of the excise duty. It will be appropriate to note here sub-rule (4) of Rule 3 which is as fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner. Before such a determination is made, we direct the Commissioner to give notice to the petitioner of the date and time of the inspection by the concerned authority for purposes of noting the (d) factor and other relevant facts, to take into consideration such objections and points raised by the petitioner and decide the annual capacity and other relevant facts based thereon. 10. It is further submitted that in a given case, it is possible that the products may be marketed at the end of the roughing mill and also at the end of the finishing mill. If that is the case, the Commissioner may also decide as to the annual capacity of production of the petitioner duly taking into consideration those factors. We direct the Commissioner to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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