https://www.taxtmi.com/caselaws?id=92044 A duty demand based on alleged suppressed production cannot be sustained where the production shortfall is computed only from consumption of one raw material and not from a properly fixed production norm under Rule 173E. The governing rule requires assessment of relevant manufacturing factors, including wastage, start-up and shutdown losses, labour and power variations, and other operating conditions. A formula used by the manufacturer was not shown to create an inflexible obligation to produce a fixed quantity, and the evidence did not establish that the entire shortfall represented suppressed production. On that incomplete basis, both the duty demand and penalties were set aside. en-us Mon, 20 Jul 1998 00:00:00 +0530 Mon, 24 Oct 2011 12:11:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=92044 A duty demand based on alleged suppressed production cannot be sustained where the production shortfall is computed only from consumption of one raw material and not from a properly fixed production norm under Rule 173E. The governing rule requires assessment of relevant manufacturing factors, including wastage, start-up and shutdown losses, labour and power variations, and other operating conditions. A formula used by the manufacturer was not shown to create an inflexible obligation to produce a fixed quantity, and the evidence did not establish that the entire shortfall represented suppressed production. On that incomplete basis, both the duty demand and penalties were set aside. Case-Laws Central Excise Mon, 20 Jul 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=92044