Installed Capacity Evidence in Excise Benefit Claims Requires Consideration of Contrary Material Before Eligibility is Decided

Concessional excise eligibility depended on the assessee's installed capacity being below the prescribed threshold. The Tribunal had relied on a certificate from the Commissioner of Industries showing installed capacity at 1,94,040 tonnes per annum, but the Revenue produced additional material, including material originating from the assessee, indicating a higher capacity beyond 1,98,000 tonnes per annum. A capacity certificate is relevant, but it cannot be accepted without considering contrary evidence. Because the Tribunal did not examine the Revenue's material, the factual basis for its conclusion was incomplete. The order was set aside and the matter was remanded for fresh consideration of installed capacity and eligibility.

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Issues: Whether the assessee was entitled to the concessional excise benefit under the notifications on the basis that its installed capacity was below the prescribed threshold, and whether the certificate relied upon by the Tribunal could be accepted without examining the Revenue's material.

Analysis: The dispute turned on the factual determination of installed capacity for eligibility to the concessional rate. The Tribunal had accepted the certificate of the Commissioner of Industries, which recorded installed capacity at 1,94,040 tonnes per annum, but the Revenue relied on additional material, including material emanating from the assessee itself, suggesting that the capacity exceeded 1,98,000 tonnes per annum. A certificate of this kind is ordinarily relevant, but where contrary material is relied upon, it must be considered before reaching a conclusion. The Tribunal had not dealt with the Revenue's evidence, so the factual basis for accepting the certificate was incomplete.

Conclusion: The Tribunal's order was set aside and the matter was remanded for fresh consideration after examining the Revenue's material on installed capacity.

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