Hot air stenter capacity computation excludes galleries, and the explanatory notification was treated as retrospective.

Galleries or buffer zones of a hot air stenter were held not to form part of the hot air chamber for annual capacity computation because they have a separate structure and function from the chamber itself. The Tribunal also treated the explanatory notification excluding such galleries as retrospective, on the basis that it merely reflected the position already in force. On that reasoning, the impugned orders were unsustainable and the assessee succeeded.

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Issues: Whether the galleries or buffer zones of a hot air stenter are to be included in the dimensions of the hot air chamber for determining annual capacity, and whether the explanatory notification excluding them applies retrospectively.

Analysis: The Tribunal followed its earlier decisions holding that the galleries have a structure and function distinct from the hot air chamber and do not form part of the chamber for capacity computation. It further held that the explanatory notification issued to exclude such galleries reflected the position that had already existed and therefore operated retrospectively. On that basis, the impugned orders were held unsustainable.

Conclusion: The galleries were not includible in the dimension of the hot air chamber, and the explanatory notification applied retrospectively. The assessee succeeded.

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