https://www.taxtmi.com/caselaws?id=212217 Notification No. 42/98-CE (NT), framed for determining annual production capacity under Section 3A of the Central Excise Act, 1944, was invalid because it did not provide a legally acceptable and workable method for assessing factory capacity. The Tribunal applied the settled principle that a Section 3A levy and collection mechanism must rest on a proper statutory basis for determining production capacity; without that basis, the notification cannot support the levy. Accordingly, the notification was held ultra vires, and the duty demands and related proceedings founded on it were unsustainable. The Revenue's appeals were dismissed. en-us Wed, 27 Apr 2011 00:00:00 +0530 Sun, 15 Apr 2012 16:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=212217 Notification No. 42/98-CE (NT), framed for determining annual production capacity under Section 3A of the Central Excise Act, 1944, was invalid because it did not provide a legally acceptable and workable method for assessing factory capacity. The Tribunal applied the settled principle that a Section 3A levy and collection mechanism must rest on a proper statutory basis for determining production capacity; without that basis, the notification cannot support the levy. Accordingly, the notification was held ultra vires, and the duty demands and related proceedings founded on it were unsustainable. The Revenue's appeals were dismissed. Case-Laws Central Excise Wed, 27 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=212217