Re-determination of annual production capacity must follow changed parameters, not the rule for existing parameters.

Where a re-rolling mill's annual production capacity is refixed because an authorised parameter has changed under the capacity-determination rules, the provision meant for determination on existing parameters cannot be used to recalculate capacity. On the revised parameters, the authority assessed the capacity at 7328.435 m.t., and Rule 5 was held inapplicable to substitute a different figure. The operative effect was that the impugned order was modified to adopt the revised annual production capacity, reflecting that re-determination under changed parameters must follow the applicable refixation mechanism rather than the general determination rule.

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Issues: Whether Rule 5 could be applied to re-determine the annual production capacity of the re-rolling mill when the capacity was sought to be refixed on account of a change in parameters under Rule 4(2).

Analysis: The capacity was sought to be revised because the 'I' factor in the formula had been changed with permission of the authorities. On the revised parameters, the authority calculated the annual production capacity at 7328.435 m.t. Rule 5 was found inapplicable because the matter was one of re-determination of capacity on changed parameters, not determination on the basis of existing parameters.

Conclusion: Rule 5 could not be invoked in the facts of the case, and the correct annual production capacity was 7328.435 m.t. The relief was in favour of the appellant.

Final Conclusion: The impugned order was modified to adopt the revised annual production capacity and the appeal was disposed of accordingly.

Ratio Decidendi: Where annual production capacity is re-fixed on account of changed parameters under the applicable capacity-determination rules, the provision governing determination on existing parameters cannot be applied to substitute a different capacity figure.

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