Amended capacity formula for re-rolled products applies where centre distance falls in the revised category, requiring re-fixation.

Annual capacity of production for re-rolled products had to be computed under the amended notification because the verification report showed a normal centre distance of 300 mm, placing the goods in the revised diameter category. The earlier capacity fixation wrongly applied the unamended parameters, including the higher value of "w", and the demand based on that inflated capacity could not stand. The impugned order was set aside, and the matter was remanded to the Commissioner to re-fix annual capacity by applying the correct amended formula.

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Issues: Whether the annual capacity of production for the re-rolled products was to be computed under the original notification or the amended notification, and whether the demand based on the higher capacity could stand.

Analysis: The capacity fixation turned on the correct application of the formula governing the relevant diameter category. The verification report showed a normal centre distance of 300 mm, which placed the goods within the revised category under the amended notification. The amended notification reduced the applicable value of "w" for that category, and the capacity had been fixed by applying the unamended parameters instead of the revised ones. Since the demand flowed from the higher capacity so arrived at, the capacity had to be re-determined under the amended notification.

Conclusion: The revised values under the amended notification were applicable, and the impugned order was set aside. The matter was remanded to the Commissioner to re-fix the annual capacity of production by applying the correct amended formula.

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