Annual capacity determination under the Hot-re-rolling Steel Mills Rules must follow Larger Bench guidelines, with reconsideration required.

Rule 5 of the Hot-re-rolling Steel Mills Annual Capacity Determination Rules, 1997 could be applied only in the circumstances earlier laid down by the Larger Bench. The impugned order was found improper because it ignored those guidelines and refused to follow an earlier Tribunal order merely on the ground that a reference application had been filed. The matter was required to be reconsidered by the Commissioner in light of the Larger Bench ruling after hearing both sides.

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Issues: Whether annual capacity of production could be fixed by invoking Rule 5 of the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997.

Analysis: The Tribunal noted that the Larger Bench had already laid down the circumstances in which Rule 5 could be applied for determining annual capacity. The impugned order did not take those guidelines into account and instead declined to follow an earlier Tribunal order merely because a reference application had been filed. That approach was held to be not legal and proper.

Conclusion: The matter required reconsideration by the Commissioner in the light of the Larger Bench ruling, after hearing both sides.

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