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TMI Blog2002 (9) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... mber of stenter. But such equipment installed in or attached to a stenter should be for aiding the process of heat setting or drying of the fabrics. That judgment is challenged in these appeals. 2.Before appreciating the contentions raised by the learned Counsel for the parties, we would refer to the relevant part of Section 3A of the Central Excise Act, 1944 (hereinafter referred to as "the Act") as under : — "Section 3A. Power of Central Government to charge Excise duty on the basis of capacity of production in respect of notified goods.— (1) Notwithstanding anything contained in Section 3, where the Central Government, having regard to the nature of the process of manufacture or production of excisable goods of any specified descriptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under : — "(1) an independent processor shall declare :— (i) the number of hot-air stenters installed in his factory; (ii) …. (iii) the number and size (both the length and width in centimeters) of chambers in each of the hot-air stenters; (iv) to (vii) ……. (2) ….. (3) the annual capacity of production of processed textile fabrics specified in rule 2 in respect of a factory of an independent processor shall be determined keeping in view the following factors, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eries, of a length 3.05 metres installed in or attached to a stenter for aiding the process of heat setting or drying of the fabrics shall be deemed to be one chamber of a stenter and any fraction of such length shall be computed on a pro rata basis." The aforesaid Explanation makes it clear that the galleries are required to be excluded while taking into consideration the float drying machines or any other equipment which is installed in or attached to a stenter for aiding the process of heat setting or drying of the fabrics. 5.At the time of hearing of this matter, the learned Attorney General submitted that the Tribunal erroneously referred to the Rules of 2000 because the Rules which came into force from December, 1998 are superseded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts (iv) and (v), it is clarified that as 'galleries' are installed or attached to the stenter and aid the process of heat setting or drying of the fabrics, these galleries provide heat insulation on either side of the stenter. As per Explanation-I to notification No. 42/98-C.E. (N.T.), a float drying machine or any other equipment of a length 3.05 metres installed in or attached in a stenter for aiding the process of heat setting or drying of the fabrics shall be deemed to be one chamber of a stenter and any fraction of such length shall be computed on a pro rata basis. It is thus clarified that they should be taken into account for the purposes of computation of the production capacity and the number of chambers." 9.In view of this Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 Rules were framed, which came into force on 10th December, 1998. Those rules were superseded by the Rules, 2000, which came into effect from 1st March, 2000. As such, there is not much difference between these Rules. The aforesaid Rules are also deleted from 1st March, 2000 and no new Rules were framed. Thereafter, Section 3A which was inserted in 1997 itself stood omitted by Act 14/2001. So, at present neither the relevant provisions nor the Rules are in existence. In this view of the matter, contention raised by the learned Attorney General does not require much consideration. Further, it cannot be held that the Tribunal committed any error in relying upon the doctrine of contemporanea expositio to remove ambiguity in understanding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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