Annual capacity determination disputes under re-rolling rules: partial pre-deposit required before waiver of recovery is granted

In a dispute over annual capacity determination under the Hot-Re-rolling Steel Mills Annual Capacity Determination Rules, 1997, the Tribunal held that Rule 5 governed the initial capacity fixation and that the earlier communication fixing capacity had not been challenged. The argument that the earlier communication was not an order was not accepted for waiver purposes, and financial hardship was not pleaded. Partial pre-deposit was therefore directed, with waiver of the balance pre-deposit and stay of recovery granted only after compliance with the deposit requirement.

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Issues: Whether the applicant was entitled to waiver of the entire pre-deposit and stay of recovery in a dispute concerning annual capacity determination under the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997.

Analysis: The applicant challenged the demand raised on the basis of annual production capacity fixed by the department. The Tribunal held that, on the facts, Rule 5 applied to the initial capacity determination and the earlier authority fixing capacity had not been challenged. The plea that the earlier communication was not an order was not accepted for the purpose of dispensing with pre-deposit. Financial hardship was not pleaded.

Conclusion: The applicant was directed to deposit Rs. 3 lakhs out of the duty demanded, and upon such deposit, waiver of the balance pre-deposit and stay of recovery were granted.

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