Annual production capacity fixation requires a speaking order; insufficient reasoning led to remand for fresh adjudication.

Fixation of annual production capacity under the compounded levy scheme could not be sustained where the order did not explain the factual basis for the revised capacity or the effective date applied. The Tribunal found the record insufficient to verify how the Commissioner reached the differential fixation, including the effect of changes in installed machinery. Because the appellants' objections required proper factual reconsideration and hearing, the matter was remanded for fresh adjudication rather than being finally affirmed.

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Issues: Whether the order fixing annual production capacity under the compounded levy scheme could be sustained without a proper speaking order and whether the matter required remand for fresh adjudication.

Analysis: The fixation of annual capacity turned on the factual basis adopted by the Commissioner, including the period from which the revised capacity was made effective and the relevance of the change in installed machinery. The order under challenge did not disclose the reasoning or the factual foundation for the differential fixation of capacity, and the Tribunal found that the existing record was insufficient to verify the basis on which the capacity had been determined. In such circumstances, merely correcting the earlier order was not appropriate because the controversy required proper consideration of the facts peculiar to the case and the appellants' objections.

Conclusion: The matter was allowed to be reopened and remanded to the Commissioner for fresh adjudication after considering the appellants' contentions and granting them an opportunity of hearing.

Final Conclusion: The assessee obtained partial relief, as the impugned fixation was not finally affirmed and the dispute was sent back for reconsideration on merits.

Ratio Decidendi: Where the basis for fixation of annual capacity is not clearly explained by a speaking order and the relevant facts require reconsideration, the proper course is to remand the matter for fresh adjudication after hearing the affected party.

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