TaxTMI 
TaxTMI 
2002 (9) TMI 113
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....20219-20 of 2001, 8140-45, 7910-11, 9354-83, 8551, 10147, 12807, 6439, 6003-4, 7744-45, 14902-05, 4850-51, 8290 AND 10636-46 of 2002 M.B. SHAH AND D.M. DHARMADHIKARI, JJ. For the Appellant : Mr. V. Lakshmi Kumaran, Adv., Mr. V. Balachandran, Adv., Mr. M.P. Devanath, Adv., Mr. Alok Yadav, Adv., Mr. Bimal Roy Jad, Adv., Mr. B.K. Khurana, Adv., Ms. Sunita Pandit, Advs., Mr. Joseph Vellapally, Sr. Adv., Mr. Amar Dave, Adv., Mr. P. Venugopal, Adv., Mr. P.S. Sudheer, Adv., for M/s. K.J. John & Co., Mr. R. Santhanan, Adv., Mr. Rajendra Singhvi, Adv. for Mr. Ashok Kumar Singh, Adv., Ms. Neelam Sharma, Adv., Mr. Tara Chandra Sharma, Adv., Mr. V.B. Joshi, Adv., Mr. Ravi Kini, Adv., Mr. Krishan Kumar, Adv., Mr. K.K. Anand, Adv., Ms. Suruchi Agga....
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....That judgment is challenged in these appeals. 2. Before appreciating the contentions raised by the learned Counsel for the parties, we would refer to the relevant part of Section 3A of the Central Excise Act, 1944 (hereinafter referred to as "the Act") as under : — "Section 3A. Power of Central Government to charge Excise duty on the basis of capacity of production in respect of notified goods. (1) Notwithstanding anything contained in Section 3, where the Central Government, having regard to the nature of the process of manufacture or production of excisable goods of any specified description, the extent of evasion of duty in regard to such goods or such other factors as may be relevant, is of the opinion that it is ....
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.... (ii) ...... (iii) the number and size (both the length and width in centimeters) of chambers in each of the hot-air stenters; (iv) to (vii) ...... (2) ...... (3) the annual capacity of production of processed textile fabrics specified in rule 2 in respect of a factory of an independent processor shall be determined keeping in view the following factors, namely : (i) the number of chambers (of a hot-air stenter), each of which having a rail length of up to 3.05 metre on each side, installed in such factory shall be construed as one chamber and any fraction exceeding such rail length of any such chamber shall be computed on pro rata basis; (ii) to (iv) ......" 4. We are not re....
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....achines or any other equipment which is installed in or attached to a stenter for aiding the process of heat setting or drying of the fabrics. 7. At the time of hearing of this matter, the learned Attorney General submitted that the Tribunal erroneously referred to the Rules of 2000 because the Rules which came into force from December, 1998 are superseded by the Rules which are framed in 2000. It is his contention that the Rules which are framed in 2000 are independent one and no assistance from the 1998 Rules can be derived for interpreting those Rules. He further submitted that Explanation I to Rule 5 is not a clarificatory one but it is a substantive provision. 8.In our view, the said submission cannot be accepted and the Tribunal....
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.... 3.05 metres installed in or attached in a stenter for aiding the process of heat setting or drying of the fabrics shall be deemed to be one chamber of a stenter and any fraction of such length shall be computed on a pro rata basis. It is thus clarified that they should be taken into account for the purposes of computation of the production capacity and the number of chambers." 11. In view of this Trade Notice, the dispute has arisen and it has been contended that the galleries which are attached to the chambers on either side of the stenter cannot be included because its purpose is only limited. The Tribunal arrived at a conclusion that the Explanation to Rule 5 makes it clear that a float drying machine or any other equipments mentione....