2002 (4) TMI 488 - AT - Central Excise

Effective Date of Production Capacity Change Determined by Commissioner's Office Intimation

JINDAL ALLOYS Versus COMMISSIONER OF C. EX., DELHI-III

The Tribunal resolved the dispute by determining the effective date of the change in production capacity of the induction furnace based on the date of ... Production capacity based duty - Annual capacity of production Issues:1. Approval of proposed change in production capacity by Commissioner.2. Effective date of change in production capacity of the induction furnace.Analysis:1. The issue of approval of the proposed change in production capacity by the Commissioner was central to this case. The Commissioner, in the impugned order, emphasized the statutory obligations conferred upon him regarding such changes. The appellant had requested a change in production capacity without waiting for the Commissioner's approval, which led to a dispute. The Commissioner highlighted the necessity for his approval before determining the effective date of the change, as per Rule 4 of the relevant rules. The Commissioner's decision was based on upholding the statutory provisions and the correct procedure for approving changes in production capacity.2. The second issue revolved around the effective date of the change in production capacity of the induction furnace. The appellant had intimated their intention to change the capacity on 23-9-97 but did not receive any response from the authorities within the stipulated time frame. The Commissioner eventually granted approval for the change, setting the effective date as 18-3-98. The appellant argued that since they had intimated the change and received no response, they proceeded with the change on 8-12-97. The appellant contended that the effective date should be 8-12-97. However, the authorities determined the relevant date for the change based on the receipt of the intimation in the Commissioner's office, which was 2-1-98. Consequently, the Tribunal held that the changed capacity of the induction furnace would be effective from 2-1-98, resolving the dispute over the effective date.In conclusion, the Tribunal disposed of the appeal by determining the effective date of the change in production capacity based on the date of receipt of the intimation in the Commissioner's office. The decision was made in accordance with the legal provisions and the established procedure for approving and implementing changes in production capacity, thereby providing clarity and resolution to the issues raised in the case.