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TMI Blog2017 (1) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... ve indulged into clandestine manufacture and removal of their product and the other Issue is whether the appellant was liable to pay duty @ of Rs. 275/- PMT as per Notification No. 25/84-CE dated 01/03/1984 which was superseded by Notification No. 138/86 dated 01/03/1986, or should have been Rs. 1,700/PMT, from 01/03/1987, as per Notification No. 175/86 - CE dated 01/03/1986. 3. The admitted facts are that the appellant is Small Scale Industry registered with the District Industry Center, Kanpur, holding Central Excise L-4 Licence No.1/Paper Mills/R-VII/1987 and have started commercial production from 01/06/1986. The appellant was availing SSI Exemption under Notification No. 175/1986-CE read with Notification No. 25/84-CE dated 01/03/1984 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learance made by Revenue, appellant is not entitled to exemption under Notification No. 175/86-CE (SSI Exemption). Accordingly, it appeared that the appellant have suppressed & cleared 1184.42 MT paper and is liable to pay Central Excise duty of Rs. 21,93,066.76/-. Further, it appeared that the appellant was required to pay duty at the rate of Rs. 1700 PMT instead of Rs. 275 PMT paid in view of Notification No. 175/86-CE dated 01/03/1986 and accordingly was liable to pay differential duty of Rs. 1,33,577/-. Accordingly, a total duty of Rs. 23,26,644.70/- was demanded including SED on the alleged clandestine production and clearance, plus short paid due to wrong rate, invoking the extended period of limitation vide Show Cause Notice dated 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r requirement of the market. As the target, or the programme of production could not be achieved due to various factors, figures were shown in RG-1 based on actual production. These two registers, private records namely, RUD-13 & 15 cannot be conclusive proof of any suppressed production and/or clandestine removal are RUD-13 is Daily Production Register record, quantity of coal received and used in the factory and sometimes sold was recorded. The word 'production' denotes quantity of Pulp, Pulp obtained during the course of production of Kraft Media Paper. The said Pulp is recycled or processed for producing Kraft Media Paper. It is further stated that there might be some clerical mistake in maintaining the records but they have not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans on the original and duplicate copies only (whereas there is provision for three copies of each challan in the booklet. There is a stamp on challan showing:- (i) exempt under Central Excise & Salt Act, 1944 being SSI unit & (ii) exempt under Section 4A of U.P. Sales Tax Act & Central Sales Tax Act being new unit. Thus, it appeared that appellant was clearing excisable goods without payment of duty. Further, RUD-20 which is private gate pass books, do not bear any running printed serial number but the numbers are incorporated at the time of filling. It was further observed that RUD- 13, captioned as, register of raw material consumed and production (private register) is an account of raw material consumed, production and sales maintained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erential duty payable including SED) further, penalty was Also imposed for Rs. 2,00,000/- on the assessee company for contravention of various rules of the Central Excise Rules. Further, confiscation was ordered of 16.293 MT of Kraft Media Paper valued at Rs. 94,499.40/- under Rule 173(Q)(1) of Central Excise Rules, 1944 and the duty imposed Rs. 23,750/- was adjusted vide bank guarantee and appropriated. 6. Being aggrieved the appellant is before this Tribunal. The Id. Counsel urges that the impugned order is not tenable as Revenue have failed to make proper enquiries and consider the relevant facts on record. He urges that it is admitted fact that the installed capacity is 600 MT per annum. He further points out that even in ideal manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him, a copy of which have been filed and furnished before this Court, the production records and clearance data etc., results into following trading account for the period of 28 months from 1st July, 1986 to 3/4 October, 1988: Opening stock (+) 28,500 kgs. Quantity produced as per calculation of Revenue-Clandestinely As per RT-12 Return - Production (+) 11,91,606 kgs. (+)8,24,182 kgs. = 20,15,788 kgs. TOTAL = 20,44,288 kgs. As per RT- 12 Returns - Clearance (-) 8,21,140 kgs. Clearance as per Revenue-Clandestinely (-) 9,21,917 kgs. Clearance TOTAL = 17,43,057 kgs. Closing stock 20,44,288 - 17,43,057 = 301231 kgs. On considering the case in totality, I find that against installed capacity of 600 MT per ann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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