2008 (5) TMI 219

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....nown as Induction Furnance Annual Capacity Determination Rules, 1997 (hereinafter referred to as the 'Rules') on the basis of annual production capacity of the Induction Furnance Unit. The petitioner filed declaration in respect of the furnance along with a certificate dated 7.9.1997 of the Chartered Engineer claiming therein that the capacity of the furnance cannot exceed 2.6 metric tonnes because they have sanctioned load of 1300 KW electricity only, which was insufficient for utilisation of the full capacity of the furnance as the load required for that purpose was 1600 KW. The Commissioner vide order dated 14.10.1997 determined the annual production capacity of the furnance at 3.2. MT on the basis of the capacity of the induction furnan....

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....ave no authority in law to determine the capacity of the furnance at 3.2. MT ignoring the sanctioned power load and the certificate of the Chartered Engineer, since the technical parameters for determining capacity by making proper verification and measurement of the production and capacity thereof with reference to the furnance, cannot be ignored. He has further argued that the respondents-authorities ought to have adopted the capacity at 2.6 MT and worked out the duty liability on that basis, as per the formula, which he has failed to do and, hence, the question of law referred to above does arise in the present case. 4. On the other hand, Ms. Anjali Kukkar, learned counsel for the respondents, has supported the orders of the Commissio....

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....if he so desires, consult any technical authority for this purpose." 7. In the instant case, admittedly, as per invoice of the supplier who supplied the furnance to the assessee-petitioner, the full capacity of the furnance is 3.2. MT. The only plea taken by the petitioner is that the sanctioned load of the electricity is less than the required one for utilisation of the full capacity of the furnance and. therefore, the capacity of their furnance deserves to be determined at 2.6. MT. However, this plea of the assessee is not maintainable as in terms of the sub-rule 2 of Rule 3 of the Rules, 1977, referred to above, sanctioned load of the petitioner could not be made basis for determining the capacity of his unit. From a bare reading of t....