Sealed stenter exclusion from annual capacity computation under textile capacity rules required fresh reassessment.

A hot air stenter that had been sealed before 1-3-2000 and remained sealed until removal was required to be excluded from annual capacity computation under the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 2000. Explanation IV to Rule 5 treats a permanently closed or sealed stenter as outside the capacity base on the relevant date, so the sealed machine could not be counted. The matter therefore required fresh determination of annual capacity after excluding the sealed stenter, and the assessment was remitted for reconsideration.

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Issues: Whether a hot air stenter that was sealed before 1-3-2000 and remained sealed until removal was required to be excluded from the annual capacity computation under the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 2000.

Analysis: The dispute concerned determination of annual capacity under the 2000 Rules, not an abatement claim under Rule 96ZQ. Explanation IV to Rule 5 specifically provided that a stenter permanently closed or sealed as on 1-3-2000 was not to be taken into account for determining annual capacity. The stenter in question had been sealed on 5-1-2000 and remained sealed until its removal. On those facts, it could not be included in the capacity calculation.

Conclusion: The sealed stenter had to be excluded from annual capacity determination, and the impugned order could not stand.

Final Conclusion: The matter required fresh determination of annual capacity by excluding the sealed stenter, and the case was sent back to the original adjudicating authority for reconsideration.

Ratio Decidendi: A permanently closed or sealed stenter existing as on the relevant date is mandatorily excluded from annual capacity computation under Rule 5 of the 2000 Rules.

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