COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH versus M/S. DOABA STEEL ROLLING MILLS.

COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH versus M/S. DOABA STEEL ROLLING MILLS.

Rule 5 of the 1997 Rules must be applied for determination of annual capacity of production when any change in installed machinery or its part is intimated under Rule 4(2); such (re)determination must be as per the formula in Rule 3(3) of the 1997 Rules. Section 3A(2) of the Central Excise Act and the rules thereunder leave no scope for an alternative mechanism; all that is required is a strict application of the statutory language.

Parties
Appellant: Commissioner of Central Excise, Chandigarh; Respondent: M/s. Doaba Steel Rolling Mills
Jurisdiction
India
Judgment Date
06 July 2011
Procedural Posture
Civil Appeal / Supreme Court; Appeals From Decisions of the High Courts and the Customs, Excise and Gold (control) Appellate Tribunal
Outcome
Appeals allowed; orders of the Commissioners restored.
Legal Topics
Excise Duty, Determination of Annual Capacity, Interpretation of Tax Statutes
Tax Law Administrative Law Excise Duty Determination of Annual Capacity Interpretation of Tax Statutes

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Parties

Commissioner of Central Excise, Chandigarh

Appellant

M/s. Doaba Steel Rolling Mills

Respondent

Procedural Posture

Civil Appeal / Supreme Court; Appeals From Decisions of the High Courts and the Customs, Excise and Gold (control) Appellate Tribunal

Legal Issues

  1. 1 Whether Rule 5 of the Hot Rerolling Steel Mills Annual Capacity Determination Rules, 1997 applies when a manufacturer makes changes to installed machinery and seeks approval under Rule 4(2)?

Ratio Decidendi

Rule 5 of the 1997 Rules must be applied for determination of annual capacity of production when any change in installed machinery or its part is intimated under Rule 4(2); such (re)determination must be as per the formula in Rule 3(3) of the 1997 Rules. Section 3A(2) of the Central Excise Act and the rules thereunder leave no scope for an alternative mechanism; all that is required is a strict application of the statutory language.

Court Disposition

Appeals allowed; orders of the Commissioners restored.

Orders

  • All impugned orders set aside.
  • Orders of Commissioners of Central Excise restored.