2004 (11) TMI 494

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....occupying adjoining premises had a single Central Excise registration. During the material period, the appellants were working under the compounded levy scheme. They had discharged their duty liability as fixed by the jurisdictional Commissioner under Rule 3 of the Induction Furnace Annual Capacity Determination Rules, 1997 (IFACD Rules). It appears from the records that, on the basis of declaration of the furnace parameters given by the party on 1-8-1997, the Commissioner fixed the Annual Capacity of Production (ACP) of the factory and the same was communicated to the party by the Assistant Commissioner. Meanwhile, the party was paying duty on the basis of ACP determined by themselves. In their self-determination of ACP, they had excluded ....

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....med that both the furnaces were capable of producing M.S Ingots during the entire period. One of the furnaces was shut down during the period 24-7-1995 to 8-3-1998 on account of labour problem. Ld. Commissioner took the view that the shut-down of a furnace for any reason other than technical did not affect the capability of the furnace to produce M.S Ingots and, therefore, the said period of non-operation of the furnace was not to be taken into account in determining the ACP, of the factory. As regards the other furnace in Unit 2, which was shut down from 23-1-1998 and eventually dismantled, the Commissioner's order is silent. Ld. Counsel has argued that the view taken by the adjudicating authority is contrary to the Tribunal's decision in ....

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....actually working during the period 1-9-1997 to 8-3-1998 was not to be included in the computation of ACP of the factory. The view taken by Id. Commissioner that any furnace, capable of producing ingots, should enter into computation of ACP by reason of its having been installed in the factory is contrary to the Tribunal's decision in Didar Steel Complex (supra). As regards the other furnace, which was shut down from 23-1-1998 to 31-3-2000 and dismantled, the impugned order is totally silent. Even according to the view taken by Id. Commissioner, the dismantled furnace cannot entertain into computation of ACP of the factory inasmuch as the installation of the furnace ceases with its dismantlement. In the result, the ACP determined by Id. Comm....