https://www.taxtmi.com/caselaws?id=164159 A capacity-based excise levy on notified goods was treated as constitutionally valid because the charge remained referable to manufacture or production, with annual capacity used only as an alternate method of quantification. The scheme was supported by safeguards such as pro-rata abatement for periods of non-production and redetermination where actual output was lower than deemed capacity. The delegated rules for determining annual capacity were also upheld because they prescribed a workable technical method, permitted verification, and were not shown to be arbitrary or incapable of application. The writ challenges to the levy mechanism and capacity-determination rules were therefore rejected. en-us Tue, 04 Jul 2006 00:00:00 +0530 Fri, 18 Apr 2014 17:02:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164159 A capacity-based excise levy on notified goods was treated as constitutionally valid because the charge remained referable to manufacture or production, with annual capacity used only as an alternate method of quantification. The scheme was supported by safeguards such as pro-rata abatement for periods of non-production and redetermination where actual output was lower than deemed capacity. The delegated rules for determining annual capacity were also upheld because they prescribed a workable technical method, permitted verification, and were not shown to be arbitrary or incapable of application. The writ challenges to the levy mechanism and capacity-determination rules were therefore rejected. Case-Laws Central Excise Tue, 04 Jul 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164159