TMI Blog2017 (2) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... ables Revenue to use input/output data given in ER-5 return for charging Central Excise duty on estimated goods that should have been manufactured by the appellant. The principle laid down is that if the provisions of erstwhile Rule 173E of Central Excise Rules, 1944 are invoked then it was mandatorily required to fix norm for electricity consumption, notify them to manufacturers and thereafter ascertain reasons for deviations, and after taking into account the consumption of various inputs, requirements of labour, material, power supply and conditions for running the plant together determine the goods manufactured and demand duty on the differential quantity of goods. Since such exercise was not carried out, therefore, I find that the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 45 kg. 1887825 kg. The said Show Cause Notice was adjudicated through Order-in-Original No. 24/ADC/GZB/2010 dated 29/04/2010. The appellants contended before the Original Authority that the consumption of raw-materials was dependent on various factors and during the period of Show Cause Notice the appellants were having problems of continuous maintenance and overhaul and therefore the production was less than in the year 2007-08. They, further, contended that the major inputs that are used in the manufacture of Ethyl Acetate are Acetic Acid and Special denatured Spirit and that Special denatured Spirit was controlled by State Government due to that reason production removal of the finished goods was verified by the State Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions and on perusal of record, it is observed that input/output data in ER-5 return for the year 2007-08 is used to estimate quantum of goods manufactured in the year 2005-06. This estimated manufacture is not covered by any of the provisions of Central Excise Act or Rules made thereunder. The said Show Cause Notice has not invoked any enabling provisions which enables Revenue to use input/output data given in ER-5 return for charging Central Excise duty on estimated goods that should have been manufactured by the appellant. I, further, find that Hon ble High Court of Allahabad has laid down the principle in the said case (Supra) referred to above and relied upon by the ld. Counsel for the appellant. The principle laid down is that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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