TaxTMI 
TaxTMI 
2006 (4) TMI 417
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.... : C.N.B. Nair, Member (T)]. - The appellant is a manufacturer of steel bars through hot re-rolling process. From September 1997, Annual Capacity of Production based central excise duty was imposed on such re-rollers. 2. Under that scheme, one factor relevant for determining the annual capacity of production of a unit is the distance of the pinions in the pinion stand. 3. Central Exc....
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....l production during the preceding year 1996-97 was higher at 6054 MT, the duty was required to be paid on that quantity. The present appeal challenges that order. 6. Rule 5 which has been relied upon by the Commissioner may be read: "In case, the annual capacity determined by the formula in sub-rule (3) of Rule 3 in respect of a mill, is less than the actual production of the mill during th....
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.... of 1996-97, the actual production of 1996-97 could be worked out on pro rata/basis, keeping the change of pinion distance and the pro rata production so worked out should be treated as actual production and levy imposed on that basis. 9. We find merit in the appellant's contention. Comparisons can be among comparables only. The change made in machinery (pinion distance) in April 1997 made t....