1997 (10) TMI 81

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....the petitioner's factory. 2. To appreciate the grievance of the petitioner, it would be necessary to refer to the relevant facts. The petitioner is engaged in the business of manufacture of M.S. Cold Twisted Deformed bars. The process involves heating and re-heating furnace and then rolling in the rolling mills. It is a common ground that the goods manufactured by the petitioner are excisable under Tariff Items 7214.90 of the Central Tariff Act, 1985, for short `Tariff Act', and the excise duty is payable under the provisions of the Central Excise Act, 1944, for short `CE Act'. By Section 3A of the Central Excise Act, the Central Government is empowered to levy excise duty on the goods presumed to have been manufactured by virtue of the ....

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.... as follows :- "In the declaration filed by the assessee it is observed that the assessees have declared only the parameters relating to finishing stand of second row only i.e., Mill consisting of S7 to S10. The parameters of the two Rolling Mills have been verified and are furnished as under :- 1st Rolling Mill consisting of 6 stands (S1 to S6) d = 342 mm. n = rpm of the drive 720 rpm i = reduction ratio of gear box and pully system 47 thereof. 2nd Rolling Mill consists of 4 stands (S7 to S10) d = 267 mm. (as against 256 mm. declared by the assessees) n = 720 rpm i = 0.46 From the above it is evident if the parameters declared by the assessees relating to 2nd row are taken into consideration duty payable would....

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.... of production of hot re-rolled products of non-alloy steel in respect of such factory shall be deemed to be as determined by applying the following formula :- Annual capacity 1,885 x 104 x d x n x i x e x w x no of utilised hours (in metric tonnes) Where d Nominal diameter of the finishing mill in millimetres n Nominal revolutions per minute (RPM on the drive) i Reduction ratio of the gear box w Weight kilogramme per metre of the re-rolled product, the value of `e' in the formula shall be deemed to be 0.30 in case of low speed mills and 0.75 in case of high speed mills." 7. From the above formula, it is clear that the (d) factor is an important factor in determining the annual capacity and that determination fixes the ....