AMBICA INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In this Appeal, M/s. Ambica Industries are challenging determination of annual production capacity of their unit manufacturing high re -rolled products under Section 3 A of the Central Excise Act and High Rerolling Steel Mills Annual Capacity Determination Rules, 1997.

(2.) We heard Shri Bipin Garg, learned Advocate, for the Appellants and Shri Kumar Santosh, learned Senior Departmental Representative for the Revenue. The learned Advocate, submitted that hot re -rolled products were declared as notified goods under Section 3A of the Central Excise Act with effect from 1.9.97; that a declaration was filed by the Appellants on 1.9.97 giving parameters of their mill; that they have followed the same with a Certificate dated 4.9.97 of an Expert Technical Authority M/s. Rakesh Agarwal and Associates certifying various parameters of their mill; that the Commissioner under Order No. 94/97 dated 29.9.97 determined their annual capacity at 6590.638 MT; that on Appeal, the Appellate Tribunal vide Order No. 29/2000 -B dated 5.1.2000, remanded the matter for re -determination of the capacity after granting a personal hearing to the Appellants and supplying the copies of verification report. The learned Advocate, further, mentioned that initially the department furnished to the Appellants their verification report dated 29.11.97 which was not the verification report relied upon in the earlier Adjudication Order; that on their request, the Department under their letter dated 7.5.02 furnished a chart in which parameters of the mills of various units were mentioned; that the same was not a verification report as it was not signed by any one from their factory; that on the basis of such chart, the annual production capacity cannot be determined; that the Department has also disregarded the Technical Expert Certificate dated 4.9.97 supplied by them to the Department on 9.9.97.

(3.) Countering the arguments Shri Kumar Santosh, learned Senior Departmental Representative, submitted that the verification report has been furnished to the Appellants under Commissioner's letter dated 7.5.02; that the second column of the report given to the Appellants reads' "Name of factory, person present"; that in this column it is clearly written M/s. Ambica Industries, Shri Yash Pal Arora, partner which goes to show that Shri Yash Pal Arora, partner of the Appellants firm was present at the time of verification of the capacity; that the report has been signed by Shri Rakesh Agarwal and, therefore, it cannot be claimed by the Appellants that the verification of the parameters of their mill was not done by the Department with the help of an expert; that the Appellate Tribunal has remanded the matter vide Final Order No. 29/2000 -B dated 5.1.2000 only with the direction to redetermine the production capacity after furnishing the verification report that as the verification report has been furnished, the principles of natural justice has been complied with and the Order deserves to be upheld.