Electricity consumption data cannot by itself prove suppressed production in central excise duty disputes.

Electricity consumption data and an IIT Kanpur technical opinion were considered insufficient to establish suppressed production for central excise duty purposes. The Tribunal noted that, on similar facts, such technical data on electricity consumption per metric tonne of ingots could not reliably determine actual consumption by an ingot manufacturer, and that view had been affirmed by the Supreme Court. On that basis, the order dropping the proceedings was found to involve no infirmity.

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Issues: Whether the demand for central excise duty based on alleged suppressed production, inferred from electricity consumption data and IIT Kanpur technical opinion, was sustainable.

Analysis: The Tribunal noted that on similar facts it had already held that technical data on electricity consumption per metric tonne of ingots, including the IIT Kanpur report, could not be relied upon to determine actual consumption by an ingot manufacturer. That view had also been affirmed by the Apex Court. In the present case, the impugned order had dropped the proceedings on the same basis, and no infirmity was found in that approach.

Conclusion: The reliance on electricity consumption data and the technical report was not sufficient to sustain the demand, and the dropping of proceedings was upheld.

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