Non-disclosure of furnace capacity data and formula justified remand for fresh determination, with pre-deposit dispensed.

A production-capacity determination cannot be sustained where the order does not disclose the technical data accepted or the formula applied, because the correctness of the annual capacity calculation cannot then be effectively tested. The matter therefore required fresh determination by the Commissioner after setting out the technical basis relied on and granting the assessee a personal hearing. Pre-deposit of duty was dispensed with, and the case was remanded for reconsideration of annual production capacity and consequential duty assessment.

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Issues: Whether the determination of the annual production capacity of the furnaces could be sustained when the technical data and formula adopted by the Commissioner were not disclosed and whether the matter required remand.

Analysis: The technical data of the furnaces had been verified by departmental officers, but the impugned order did not disclose the data accepted or the formula used for arriving at the annual production capacity. In the absence of such particulars, the correctness of the capacity determination could not be examined effectively. The matter therefore called for fresh determination after indicating the technical data accepted and the formula applied, with an opportunity of personal hearing to the assessee. On that basis, pre-deposit of duty was dispensed with and the case was sent back to the Commissioner.

Conclusion: The challenge to the capacity determination was not finally adjudicated on merits, and the matter was remanded for fresh determination. The relief on pre-deposit was granted in favour of the assessee.

Final Conclusion: The appeal did not end in a merits-based determination of duty liability and was returned for reconsideration of annual production capacity and consequential duty assessment.

Ratio Decidendi: A production-capacity determination cannot be upheld where the order does not disclose the technical data and formula relied upon, and such non-disclosure warrants remand for fresh decision after hearing the assessee.

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