Annual capacity computation must exclude galleries in stenter cases; demand based on such inclusion was set aside and remanded.

Galleries could not be included in the annual capacity computation for stenters because they were not equipment aiding heat setting or drying of fabrics within the relevant rule. The capacity order had wrongly taken galleries into account, so the demand founded on that computation could not be sustained. The Tribunal applied the settled Larger Bench view and noted the High Court's direction for reconsideration of the grievance concerning galleries. The impugned appellate order was set aside and the matter remanded for fresh determination of annual capacity in accordance with law.

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Issues: Whether galleries could be taken into account while determining the annual capacity of stenters under the relevant capacity determination rules, and whether the duty demand based on such determination could be sustained.

Analysis: The Tribunal relied on the Larger Bench view that galleries are not equipment aiding the process of heat setting or drying of fabrics within the meaning of the relevant rule and, therefore, cannot be included while fixing annual capacity. The capacity order had admittedly taken galleries into account, making the foundation of the demand contrary to the settled legal position. The Tribunal also noted the High Court's direction permitting reconsideration of the grievance regarding galleries and requiring redetermination in accordance with law.

Conclusion: The inclusion of galleries in the capacity computation was held to be impermissible, the impugned appellate order was set aside, and the matter was remanded for fresh determination of annual capacity in accordance with law.

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