BARNALA STEEL INDUSTRIES LTD Vs. CCE

JUDGEMENT

(1.) THIS is an appeal against the finding of the Ld. Commissioner holding that the changed capacity of the rolling mill shall be effective from 23.9.98 as against the actual changed capacity as claimed by the appellants to be effective from Jan. '98.

(2.) SHRI Alok Arora, Ld. Counsel submits that the appellants had filed an application with the Commissioner on 20.11.97. He submitted that in this application the appellants had indicated their intent to reduce the production capacity of their hot rolling mill. The proposed day shown was 24.12.97. He submitted that on 24.12.97 the appellants intimated that they had reduced the production capacity of their hot rolling mill w.e.f. today i.e. 24.12.97 and therefore, requested for verification of the same and passing orders in regard to the reduced annual production capacity. Ld. Counsel submitted that the appellants again on 6.1.98 wrote to the Commissioner indicating that they had reduced their capacity of the hot rolling mill w.e.f. the month of Jan. '98 and requested for approving the same. He submitted that on 19.2.98 the appellants again reminded the Commissioner of Central Excise to accord approval to the reduced capacity of the hot rolling mill of the appellant. He submitted that Preventive Officers visited their factory for verification of the data (parameters) on 23.9.98. He submitted that the Ld. Commissioner instead of fixing the reduced capacity w.e.f. the month of January unilaterally fixed the capacity to be effective from 23.9.98 without giving them an opportunity of explaining their case. He submits that if the Ld. Commissioner wanted to make the reduced capacity effective from a date other than in the month of Jan.'98 he should have given them a chance of explaining their case fore fixation of the reduced capacity to be effective from Jan. '98. He submits that thus there has been a violation of principles of natural justice, he prays that the impugned order may be set aside and the reduced capacity may be made effective from Jan. '98 or the papers may be sent back for reconsideration of the papers before the Commissioner concerned.

(3.) SHRI Mewa Singh, Ld. DR submits that Rule 4(2) of the Hot Re -rolling Steel Mills Annual Capacity Determination Rules, 1997 provides for obtaining written approval of the Commissioner before making such change. He submits that the appellants had effected the change on their own before obtaining such permission and therefore, the Ld. Commissioner has rightly held that the reduced capacity shall be effective from 23.9.98.