M/S. Paras Ship Breakers Ltd vs Commissioner Of Central Excise

The Supreme Court addressed the determination of deemed annual production under Section 3A of the Central Excise Act, 1944, emphasizing that the actual capacity of an induction furnace must be considered rather than the nominal capacity. The Court held that the appellant's claim of reduced capacity to 4.5 M.Ts due to insufficient power supply was valid, and the authorities' insistence on an 8 M.Ts capacity was erroneous. Consequently, the Court set aside the lower court's decision, allowing the appeal.