2007 (8) TMI 32

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....ujarat. It is in the business of manufacturing aluminium plates, sheets, ingots and strips, aluminium circles and aluminium waste and scrap. 3. We are concerned with the period April 1, 1988 to February 28, 1992. The show cause notice given to the appellant is dated March 24, 1993. It was issued on the following, amongst other grounds, namely, clandestine removal, non-payment of duty on goods cleared during the material period, non-maintenance of statutory records and accounts, selling of pat scrap without payment of duty and non-entitlement to the benefit of exemption under Notification No.175/86-CE for ingots. 4. On the main question of clandestine removal and non-maintenance of statutory records and accounts, penalty of Rs.10 lakhs....

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....the total value of clearances exceeded the limit of Rs.2 crores during the earlier year (1989-90) and, therefore, the appellant was not entitled to SSI exemption for the year 1990-91 in respect of ingots. Under the exemption Notification No.175/86-CE concessional rate of duty was admissible provided the value of clearances in the previous year did not exceed Rs.2 crores. This reasoning of the Department was challenged by the appellant before the Tribunal. According to the appellant, vide clause 3 of the exemption Notification No.175/86-CE dated 1^st March, 1986 a ceiling limit was imposed on the total value of clearances at Rs.2 crores for the preceding financial year. However, under the proviso to clause 3, clearances of goods with a brand....