2000 (8) TMI 640 - AT - Central Excise

Appellate Tribunal overturns duty liability ruling, excludes galleries from Stenter dimensions

VIJAY ANAND FABRICS (P) LTD. Versus COMMR. OF CUS. & C. EX., HYDERABAD-III

The Appellate Tribunal CEGAT, CHENNAI set aside the impugned orders and allowed the appeals concerning the redetermination of duty liability and the ... Production capacity based duty - Annual Capacity of production Issues:1. Redetermination of duty liability based on the length of galleries.2. Application of the law regarding the inclusion of galleries in the dimension of the Hot Air Chamber of the Stenter.Analysis:1. The impugned order involved the redetermination of duty liability by considering the length of galleries. The Tribunal referred to previous cases and held that the galleries (buffer zones) should not be included in the dimension of the Hot air chamber of the Stenter. The Tribunal cited Notification No. 14/2000-C.E. (N.T.), dated 1-3-2000, which explained that galleries should be excluded from the Stenter's dimensions. The Tribunal emphasized that this explanation should be applied retrospectively. The Tribunal found that the orders in question did not address this issue adequately, making them not speaking orders. Consequently, the Tribunal set aside the impugned orders and remanded the matter for fresh consideration by the lower authorities, directing them to consider the explanations provided in the notification. The appeals were allowed based on this analysis.2. The Tribunal, upon reviewing the submissions and records, concluded that the law was well settled regarding the inclusion of galleries in the dimension of the Hot Air Chamber of the Stenter. It was established that the galleries should not be considered part of the Stenter's dimension, as clarified by the government notification. The Tribunal noted that this issue had been conclusively addressed in previous decisions, leading to the decision to set aside the impugned order and allow the appeal based on the established legal principles. The Tribunal applied the ratio of previous decisions to the present case, leading to the setting aside of the impugned order and allowing the appeal.This comprehensive analysis of the judgment from the Appellate Tribunal CEGAT, CHENNAI highlights the issues of redetermination of duty liability and the application of the law regarding the inclusion of galleries in the dimension of the Hot Air Chamber of the Stenter. The Tribunal's detailed examination of previous cases and relevant notifications ensured a thorough and legally sound decision in setting aside the impugned orders and allowing the appeals based on established legal principles and precedents.