Deemed re-determination of annual capacity takes effect one month after valid intimation of changed mill parameters.

Re-determination of annual capacity under the Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997 was treated as operating on a deemed basis from one month after the assessee's intimation of changed mill parameters. The Tribunal accepted that the assessee had duly informed the department, the communication was acknowledged, and no adverse finding was recorded against it. Because departmental action followed much later, the effective date was linked back to one month from the intimation rather than a later administrative date. The Tribunal distinguished the contrary precedent on the basis that the department had acted promptly there. The revised capacity was accordingly made effective from one month after the intimation dated 8-3-1998.

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Issues: Whether the re-determined annual capacity under the Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997, was required to take effect from one month after the assessee's intimation of changed parameters.

Analysis: The assessee had intimated the departmental authorities about the change in mill parameters and had followed up repeatedly. The intimation was received and acknowledged, and no adverse finding was recorded against that communication. The Tribunal held that where re-determination operates on a deemed basis, the effective date must relate back to one month from the date of the initial intimation, especially when departmental action is taken much later. The cited precedent supporting immediate linkage to the date of intimation was accepted, while the contrary precedent was distinguished on the ground that the department had acted promptly in that case.

Conclusion: The re-determined capacity was held effective from one month after the assessee's intimation dated 8-3-1998, and the assessee succeeded.

Ratio Decidendi: Where a revised annual capacity is to operate on a deemed basis and the assessee has duly intimated the change, the effective date is one month from the date of such intimation unless the statute or prompt departmental action requires otherwise.

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