Prior written approval determines the effective date of annual capacity change for an independent textile processor

Rule 5 of the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 requires an independent textile processor to intimate the Commissioner in advance and obtain prior written approval before changing installed machinery. Because written approval is a condition precedent, the revised annual capacity becomes effective only from the date of approval, not from the earlier date of intimation. As the Commissioner's approval was dated 11-1-1999, that date governed the change in capacity.

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Issues: Whether the effective date of a change in installed machinery affecting annual capacity of an independent textile processor is the date of the Commissioner's written approval or the earlier date of intimation.

Analysis: Rule 5 of the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 requires an independent processor proposing a change in installed machinery to intimate the Commissioner in advance and obtain written approval before making the change. The date from which the annual capacity change is to be deemed effective follows the Commissioner's written approval. As the approval in the present case was dated 11-1-1999, the change could take effect only from that date and not from the earlier date of intimation.

Conclusion: The effective date of the change was 11-1-1999 and not any earlier date, and the appeal failed.

Ratio Decidendi: Where the governing rule makes prior written approval of the Commissioner a condition precedent, the deemed effective date of change in annual capacity is the date of such approval and not the date of intimation.

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