Unchallenged annual capacity determination sustains duty demand; belated actual-production re-determination and abatement plea fail.

Where Annual Capacity of Production fixed under the compound levy regime remained unchallenged, duty liability was enforceable on that basis for the relevant period. A later request for re-determination on actual production could not be raised in proceedings concerning the existing demand, especially when it did not relate to the period in dispute. In the absence of any timely abatement claim, alleged factory closure did not justify relief. The provision for re-determination on actual production was therefore treated as inapplicable on these facts, and the demand based on the determined capacity was upheld.

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Issues: Whether the demand of duty based on the Annual Capacity of Production fixed by the department could be sustained when that determination was never challenged, and whether the assessee could raise a plea of re-determination on actual production or abatement of duty at the appellate stage.

Analysis: The Annual Capacity of Production fixed by the Commissioner was not disputed in appeal, and duty had already been paid by the assessee for an earlier period on that basis. The demand under challenge was only a confirmation of duty liability arising from non-payment during the relevant period on the basis of the unchallenged capacity determination. The request for re-determination of capacity on actual production was made much later and did not relate to the period covered by the present demand. In the absence of any abatement claim, the plea based on alleged closure of the factory could not be entertained. The provision for re-determination on actual production was held inapplicable on these facts.

Conclusion: The duty demand based on the determined Annual Capacity of Production was upheld, and the assessee's challenge failed.

Final Conclusion: The appeal was rejected because the assessee remained bound by the unchallenged capacity determination and had no basis to seek relief on actual production or abatement in these proceedings.

Ratio Decidendi: Where the Annual Capacity of Production fixed under the compound levy regime is not challenged, duty liability may be enforced on that basis, and a belated plea for re-determination on actual production or abatement cannot be raised without a timely claim and supporting proceedings.

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