2015 (6) TMI 780

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....ot paying any duty on the goods manufactured by them, as according to them they were eligible for SSI exemption. On 11.11.2011, the factory premises of the appellant were searched in the presence of independent Panchas. It was found that they were manufacturing the PVC pipes of different diameters and thickness. In the course of search of the factory premises, a challan book was recovered which contained details of the clearances of the PVC pipes to the appellants' go-down/shop. The challan book contained details of the clearances during the period from 06.05.2011 to 18.10.2011. It was found that the challan book recovered from the factory, which contained the details of the clearances during the period 06.05.2011 to 18.10.2011 showed t....

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....6, 8, 10 and 11 of the Central Excise Act, 2002. Against this order of the Commissioner, this appeal has been filed alongwith stay application. 2. Heard both sides in respect of stay application. 3. Shri Bipin Garg, Advocate, the ld. Counsel for the appellant, pleaded that the duty demand during the period 2007-08 to 2011-12 has been made confirmed only by estimating the production based on the electricity consumption, that the officers have arbitrarily taken average production per unit of electricity as 2.039 Kg., which is not correct, as the pipes being manufactured were of different diameters and different thickness, that the electricity was also being consumed for recycling of the plastic waste, and since the factory were not runn....

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....ng each financial year must be in excess of SSI exemption limit, that the power consumption of the appellant is also a clear indication that the actual production of the appellant must be much more than SSI limit, and that in view of these circumstances, the officers have correctly estimated the production on the basis of the electricity consumption and hence, this is not the case for waiver from the pre-deposit. 5. We have considered the submissions from both the sides and perused the records. 6. There is no dispute that the appellant during the period of dispute had neither taken central excise registration nor were paying duty, claiming that their clearances are fully within the SSI exemption limit. However, the challan book recove....