Annual capacity re-determination for changed mill parameters falls under Rule 4, not Rule 5, in hot re-rolling mills.

Where a hot re-rolling mill undergoes a change in its parameters, annual capacity of production must be re-determined under Rule 4 of the Hot Re-rolling Mills Annual Capacity Determination Rules, 1997, rather than Rule 5. The Tribunal relied on its earlier view that Rule 5 does not govern cases involving a factual change in mill parameters, and that Rule 4 is the applicable provision for re-assessment of capacity. On the admitted change in the 16-inch mill parameters, the assessee's case fell within that principle and capacity was required to be fixed under Rule 4.

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Issues: Whether, on a change in the parameters of the mill, annual capacity of production was required to be determined under Rule 4 of the Hot Re-rolling Mills Annual Capacity Determination Rules, 1997, or under Rule 5 of those Rules.

Analysis: The dispute turned on the effect of the admitted change in the parameters of the 16 inches mill. The Tribunal followed its earlier decision holding that where parameters are changed, Rule 5 is not the relevant provision for determining annual production capacity and Rule 4 governs such re-determination. As the factual change in parameters was not disputed, the assessee's case squarely fell within that principle.

Conclusion: The annual capacity of production had to be determined under Rule 4, not Rule 5, and the assessee succeeded on the issue.

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