Annual capacity determination under Section 3A(2) is appealable, and disputed capacity must be redetermined after evidence is considered.

A determination of annual capacity under Section 3A(2) was treated as a statutory order, not merely a provisional step, so it remained open to appellate scrutiny. Where the manufacturer disputed that determination and produced evidence, Section 3A(4) required the Commissioner to reconsider annual capacity and duty liability, take the evidence into account, and comply with natural justice. The article thus states that the maintainability objection failed and that fresh redetermination was required under the statutory scheme.

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Issues: (i) whether the order determining annual capacity under Section 3A(2) was only provisional and therefore not appealable; and (ii) whether the Commissioner was required to redetermine annual capacity and duty liability under Section 3A(4) after the assessee disputed the determination and produced evidence.

Issue (i): Whether the order determining annual capacity under Section 3A(2) was only provisional and therefore not appealable.

Analysis: The determination under Section 3A(2) was treated as a regular statutory determination made under the rules and notifications framed for that purpose. It was held that the order did not acquire a provisional character merely because it was described as such, and it could not be excluded from appellate scrutiny on that basis.

Conclusion: The order under Section 3A(2) was held to be appealable, and the objection to maintainability failed.

Issue (ii): Whether the Commissioner was required to redetermine annual capacity and duty liability under Section 3A(4) after the assessee disputed the determination and produced evidence.

Analysis: Section 3A(4) was applied as a mandatory consequential safeguard where the manufacturer disputes the capacity fixed under Section 3A(2). Since the assessee had disputed the determination and relied on evidence, the Commissioner was required to reconsider the matter, take the evidence into account, and act consistently with the principles of natural justice.

Conclusion: The Commissioner was directed to redetermine annual capacity and duty liability under Section 3A(4) after considering the evidence and following natural justice.

Final Conclusion: The assessee succeeded in getting the maintainability objection rejected and in securing a direction for fresh determination of capacity and duty liability.

Ratio Decidendi: A determination made under Section 3A(2) is an appealable statutory order, and where its correctness is disputed with supporting evidence, Section 3A(4) obliges the Commissioner to redetermine the capacity after considering that evidence and observing natural justice.

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