Natural justice limits stenter capacity revision where gallery dimensions are added without notice or effective hearing.

Annual capacity under the hot air stenter rules must be computed only after proper notice and an effective opportunity to contest inclusion of gallery dimensions. The Tribunal followed earlier authority that gallery space could not be added to the chamber count without considering the technical material and hearing the assessee on the proposed basis of revision. Because no show cause notice had been issued on that specific issue, the capacity determination was vitiated by denial of natural justice and could not stand. The matter was therefore remanded to the original authority for de novo reconsideration after notice and hearing.

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Issues: Whether the annual capacity of a hot air stenter could be fixed by including the dimensions of the gallery in the number of chambers, and whether the assessment order required to be set aside for want of notice and effective hearing.

Analysis: The dispute turned on the computation of annual capacity under the Hot Air Stenter annual capacity rules, specifically whether gallery space formed part of the chambers for capacity determination. The Tribunal noted that similar matters had already been remanded where the technical material on record regarding the role of galleries had not been properly considered. It also followed earlier authority holding that where no show cause notice was issued on the proposed inclusion of gallery dimensions, the resulting order suffered from denial of natural justice. In view of those covered decisions, the impugned determination could not stand without fresh consideration after notice and hearing.

Conclusion: The capacity determination order was set aside and the matter was remanded to the original authority for de novo reconsideration after issuing notice and granting an effective opportunity of hearing.

Final Conclusion: The assessee obtained remand relief, and the duty computation based on inclusion of gallery dimensions was left for fresh adjudication by the original authority.

Ratio Decidendi: Where capacity under the stenter rules is revised by including gallery dimensions, the assessee must first be put to notice and given an effective opportunity to contest the basis of revision; failure to do so vitiates the order and warrants remand.

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