2011 (7) TMI 1028

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....ER (Per : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Revenue has challenged a judgment of the tribunal dated 25.2.2004 by which the tribunal allowed the appeal of respondent assessee following the decision of Madras High Court in case of Beauty Dyers v. Union of India reported in 2002 (52) RLT 636(Mad.), holding the notification by which annual capacity determination rules have been framed as ul....

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.... present form does not bring about the full controversy. We therefore, reframe the question for consideration in the present appeal as follows :             "Whether CEGAT was correct in allowing the appeal of respondent assessee following judgement of Madras High Court in case of Beauty Dyers v. Union of India reported in 2002 (52) RLT 636....

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....of clearance to annual production capacity. Accordingly, the assessee was charged by the department authority. However, the tribunal by following decision of Madras High Court holding such rules ultra vires, reversed the orders of the  revenue authority. Counsel pointed out that Division Bench of this Court in case of Messers Gopal Iron & Steel, Co. (Gujarat) Ltd. & anr. in Special Civil A....

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....section takes care of the rights of the producer/manufacturer by providing that on less production/manufacture, he would be entitled to refund and the Supreme Court says that Section3A is relatable to the production and not the capacity only, then, it would not be proper to say that Section3A is ultra vires the Constitution. We would agree with the learned Counsel that excise can be levied on the ....