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2013 (10) TMI 721 - CESTAT NEW DELHISSI exemption - Contravention of CE Rules – Non-accountal of Raw Material – No statutory obligation to maintain accounts of production and clearance - Held that:- The clearances during the financial year were not even required to file a declaration, which is required when the clearances cross Rs. 90,00,000/-, that registration is required when the clearances cross Rs. 1.3 crores, that since on the date of the officers visit, the appellants unit was not even declarant unit - they were not even required to maintain the statutory records thus for non-accountal of the raw material and the finished goods, there is no contravention of Central Excise Rules so as to attract confiscation of goods and penalty - Relying upon Dayal Industries vs. CCE, Delhi - II [2006 (4) TMI 12 - CESTAT, NEW DELHI]. Waiver of Pre-deposit – Held that:- The only basis for confiscation of the goods is that the appellant were required to maintain the statutory Central Excise records and the seized goods were not accounted for - It is well settled that a unit, which is well within the SSI exemption limit and is not even required get registered with Central Excise, is not required to maintain statutory Central Excise records and no penalty can be imposed for non-accountal of the excisable goods - Though the learned Jt. CDR pleads that the appellant were not eligible for SSI exemption as their clearances were required to be clubbed with the clearances with the other group units, in the show cause notice, there was no such allegation - the appellant have a strong prima facie case - the requirement of pre-deposit of penalty is waived for hearing of their appeals and recovery stayed till the disposal of the appeal - stay granted.
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