Annual capacity change takes effect only on Commissioner's determination, not on the date of the assessee's request.

Under Rule 4(2) of the Hot Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997, a change in annual capacity parameters becomes operative only when the Commissioner makes the statutory determination. A mere request or letter from the assessee does not itself alter the applicable capacity for duty purposes. Until that determination is made, the assessee remains bound by the existing arrangement and liable accordingly. Precedents cited by the assessee were distinguished as fact-specific and not applicable on the records before the Court, so the Commissioner's action was upheld and the challenge failed.

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Issues: Whether the change in the annual capacity parameters of the assessee could take effect from the date of the request or only from the date on which the Commissioner made the determination under the applicable Rules.

Analysis: Under Rule 4(2) of the Hot Re-Rolling Steel Mills Annual Capacity Determination Rules, 1997, the change in parameters becomes operative only upon determination by the Commissioner. The request for change was received by the departmental authorities on different dates, and the Commissioner acted upon it when it was received. Until such determination, the assessee remained liable to pay duty under the existing arrangement. The relied-upon precedents were found inapplicable on the facts because they turned on different records and different factual matrices.

Conclusion: The change in parameters did not take effect from the date of the assessee's letter or request, and the Commissioner's action was valid. The challenge failed.

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