Annual capacity re-determination failed where only one furnace was functional and remand directions were ignored.

Annual capacity of production had to be re-determined on the basis that only one batch type furnace was functional during the relevant period, a factual position not disputed by the Revenue. The earlier remand directions required the adjudicating authority to assess capacity on that basis, but the impugned order failed to comply and instead relied on an inapplicable precedent. As a result, the annual capacity determination was unsustainable, the order was set aside, and consequential relief followed.

---

---

Issues: Whether the annual capacity of production had to be re-determined on the basis of only one functional batch type furnace and whether the impugned order complied with the earlier remand directions.

Analysis: The verification sheets and the material on record showed that only one furnace was functional during the relevant period, and this factual position was not disputed by the Revenue. The earlier remand orders required the adjudicating authority to re-determine capacity on that basis, but the impugned order did not give effect to those directions and instead relied on an inapplicable precedent. In the circumstances, a further remand was found to serve no useful purpose.

Conclusion: The annual capacity determination was held to be unsustainable, the impugned order was set aside, and the appeal was allowed with consequential relief.

---