ORDER

1. The appellant is engaged in the manufacture of two kinds of dyes. One is called the Rapidogens and the other Naphthol ASG. So far as Rapidogens is concerned, it was held exempt from duty totally by virtue of Notification No. 180/61 dated 23-11-1961. Naphthol ASG was, of course, not exempt from duty under the said notification. In the case of this product, the appellant claimed the benefit of another exemption notification being Notification No. 71/78 dated 1-3-1978. This notification provided that if the total production of excisable goods in a factory does not exceed 13.75 lakhs in the preceding financial year, then clearances up to five lakhs will be exempt from duty. In his declaration filed for the purpose of claiming the benefit of Notification No. 71/78, the appellant stated that the excisable goods manufactured by him during the year 1977-78 (previous financial year) was Rs 3,25,200 only. On the basis of the said declaration, benefit of Notification No. 71/78 was extended to him.

2. On 19-11-1981, the Assistant Collector issued a notice to the appellant calling upon him to show cause as to why he should not be deprived of the benefit of Notification No. 71/78 inasmuch