TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellate Tribunal modifies annual capacity order, upholds penalty, sets it aside on timing.</h1> The Appellate Tribunal CESTAT, New Delhi, modified the order passed by the Commissioner (Appeals) regarding the fixation of annual capacity for processed ... Production capacity based duty - Annual capacity of production Issues:1. Challenge against the order passed by the Commissioner (Appeals) dated 13-5-2002 regarding the fixation of annual capacity including galleries.2. Dispute over the calculation of the average value of Rs. 30 per sq. m. based on clearances for domestic consumption only, excluding export clearances.Issue 1 - Fixation of Annual Capacity:The appellants, manufacturers of processed man-made fabrics, challenged the order passed by the Commissioner (Appeals) regarding the fixation of annual capacity including galleries. The Tribunal referred to a previous decision in Sangam Processors, affirmed by the Hon'ble Supreme Court, which favored the appellants. It was held that including galleries in the annual capacity calculation cannot be sustained. Therefore, the order impugned was modified to exclude galleries from fixing the annual capacity.Issue 2 - Calculation of Average Value:The second issue revolved around the calculation of the average value of Rs. 30 per sq. m. based on clearances. The appellant considered only clearances for domestic consumption, while the authorities insisted on including export clearances. Upon examining the relevant Notification and Rules, the Tribunal found no provision to exclude export clearances for calculating the average value. Consequently, the appellant's contention on this issue was rejected. The order imposing a penalty of Rs. 6.60 lakhs on the appellant was confirmed in the initial decision. However, since the demand fell within the normal period, the Tribunal found no justification to uphold the penalty. Thus, the penalty was set aside, and the appeal was partly allowed under these terms.This judgment by the Appellate Tribunal CESTAT, New Delhi addressed the issues of fixation of annual capacity and calculation of the average value, providing a detailed analysis and decision on each point raised in the appeal.
TaxTMI 
TaxTMI 
