2008 (7) TMI 312

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....s the jurisdiction to grant reduction of annual capacity of induction furnace from annual capacity of 5MT to 4 MT in light of Rule 3(1) of the Induction of Furnace Annual Capacity Determination Rules, 1997 read with Circular dated 25-7-1997? (c) Whether in the facts and circumstances of the case, the tribunal is justified in placing reliance upon the documents relied upon by the respondent in comparison with the invoice of the manufacturer of furnace produced by the respondent showing the capacity of induction furnace being of 5MT?" 2. The respondent-assessee is engaged in manufacture of MS Ingots of non-alloy steel in induction furnace plants. For this purpose the respondent assessee had installed furnace purchased under invoice bearing ....

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....That Rule 4 of the Rules on which reliance has been placed does not permit such an exercise once the Commissioner had fixed the capacity of the furnace and for the purpose of making such a change at least one month in advance, of such proposed change, the assessee is required to obtain written approval of the Commissioner before making such change. That in the present case the assessee had in fact initially opted to have the determination made under Rule 3(1) of the Rules and could not have thereafter changed within a short span of two months to opt for fixation under Rule 3(2) of the Rules. In these circumstances, the Tribunal had committed an error in law in reading Rule 3(1) of the Rules and hence, a substantial question of law arose out....

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....right. The certificates of the Manufacturer and the Chartered Engineer have been considered by the Tribunal. 6. The entire controversy has stemmed from the fact that initially the assessee produced only invoice in support of the claim for fixation of annual capacity of production and subsequently produced certificates issued by the Chartered Engineer and the Manufacturer. However, the Commissioner did not look into the certificates produced subsequently only on the ground that under Rule 3(1) of the Rules only the invoice was the relevant document and no other document could be considered. The Commissioner took the view that merely because some parts of the furnace had been changed such artificial change brought about by the assessee in th....