Intimation date governs reduced induction furnace capacity under the annual capacity scheme; receipt by authority fixes the operative date.

Under the induction furnace annual capacity determination scheme, a change in furnace capacity takes effect from the date the required intimation is received by the competent authority. The assessee had informed the authorities of the change in crucible, and the communication was received in the Commissioner's office on 02.01.1998. That receipt date, not the date of actual change or a later date fixed by the Commissioner, was treated as the operative date for applying the reduced capacity.

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Issues: Whether the effective date of the reduced capacity of the induction furnace should be the date of receipt of the assessee's intimation, the date on which the assessee actually changed the crucible, or the later date fixed by the Commissioner.

Analysis: The goods were covered by the annual capacity determination regime under Section 3A of the Central Excise Act, 1944 and Notification No. 30/97-C.E. (N.T.) dated 01.08.1997, with the change governed by Rule 4 of the Induction Furnace Annual Capacity Determination Rules, 1997. The assessee had intimated the proposed change and later informed the authorities that the change had been effected. The communication was received in the Commissioner's office on 02.01.1998. Since the change in capacity was required to be intimated to the Commissioner, the date of receipt of that intimation was treated as the operative date for applying the changed capacity.

Conclusion: The effective date of the reduced capacity was held to be 02.01.1998, not 18.03.1998 and not 08.12.1997.

Final Conclusion: The appeal succeeded only to the extent that the changed capacity was directed to operate from 02.01.1998, with consequential relief according to law.

Ratio Decidendi: Where a statutory scheme requires intimation of a change in furnace capacity, the date of receipt of that intimation by the competent authority is the relevant date for giving effect to the changed capacity.

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