Annual production capacity must follow current-year parameters; prior-year actual production is irrelevant after a material factor change.

Annual production capacity for a re-rolling mill must be computed on the prescribed parameters applicable for the relevant year, and a prior year's actual production cannot be carried forward where a material input factor has changed. Here, the reduction of the 'd' factor from 225 mm to 203 mm materially altered the computation for the current year, so the previous year's actual production was not a valid basis for determining deemed capacity. The capacity fixed at 3051 M.Ts on the applicable current-year parameters was upheld, and the appellant obtained relief.

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Issues: Whether, for determining the annual production capacity of the re-rolling mill for the current year, the previous year's actual production could be taken as the basis when the relevant 'd' factor had been reduced.

Analysis: The Rules contemplated that where the annual production capacity computed on the prescribed parameters was less than the actual production of the mill during the financial year 1996-97, the deemed capacity would be equal to such actual production. However, the computation depended on multiple parameters, and the reduction of the 'd' factor from 225 mm to 203 mm with effect from 30-7-97 materially affected the resulting capacity figure. On that basis, the previous year's actual production, which was generated under the higher 'd' factor, was held not to be relevant for the current year's determination.

Conclusion: The annual production capacity of the mill for the current year, as determined at 3051 M.Ts on the applicable parameters, was upheld; the appeal succeeded.

Final Conclusion: The determination was accepted on the current year's parameters, and the appellant obtained relief.

Ratio Decidendi: Where annual production capacity is to be computed on prescribed parameters, a prior year's actual production figure is not relevant for the succeeding year if a material parameter affecting the computation has changed.

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