2004 (2) TMI 530 - AT - Central Excise

Tribunal rules in favor of appellants in rolling mill case, sets change date from 1-1-99

The Tribunal ruled in favor of the appellants in the case concerning the change of parameters of the rolling mill. Despite the Revenue's delayed response, ... Production capacity based duty - Change of parameters Issues: Date of change of parameters of the rolling millIn this case, the appellants filed an appeal against the order passed by the Commissioner of Central Excise allowing the change of parameters of the rolling mill with effect from a specific date. The appellants argued that the annual capacity of their rolling mill was fixed by the Commissioner, and they requested a change in parameters through multiple letters. The Commissioner eventually granted permission to change the parameters, and the annual capacity was revised accordingly. The main dispute revolved around the date from which the change in parameters should be considered for determining the annual capacity of production.The appellants contended that the change in parameters occurred from 26-10-98, while the Revenue argued that the change was allowed and verified on 30-7-99. The Tribunal analyzed the correspondence between the parties and noted that the appellants had consistently communicated their request for a change in parameters, but the Revenue did not respond promptly. Despite the lack of response from the Revenue, the Tribunal held that the date for the change of parameters should be considered from 1-1-99 based on the appellants' letter received by the Commissioner's office on that date. The Tribunal emphasized that the inaction of the Revenue should not prejudice the rights of the appellants, and therefore, the date for re-determination of the production capacity was fixed as 1-1-99.Ultimately, the Tribunal disposed of the appeal in favor of the appellants, determining the date for the change of parameters as 1-1-99 for the re-determination of the annual capacity of production.