Electricity-consumption norm for duty demand required fuller examination, leading to remand for fresh determination of production norm.

Duty computed on an electricity-consumption norm was found unsound because the norm was derived from only part of the electricity bills, without accounting for low power factor adjustments that affected the meter reading used to fix production. No production norm had been fixed during the relevant period under the excise rules, and the furnace specifications suggested a higher consumption requirement than the figure adopted in adjudication. The basis for determining the production norm therefore required fuller examination on the entire material for the period. The electricity-based duty demand was not finally sustained, and the matter was remanded to the Commissioner for fresh determination after hearing the appellants.

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Issues: Whether the duty demand based on the electricity-consumption norm was sustainable and whether the matter required remand for fresh determination of the production norm.

Analysis: The demand was founded on a computed norm derived from only part of the electricity bills for the relevant period. The adjustment shown in the electricity bills for low power factor was not taken into account, although it affected the meter reading relied upon for fixing the production norm. No norm had been fixed during the relevant period under the applicable excise rules, and the furnace specifications indicated a higher consumption requirement than the figure adopted in adjudication. In these circumstances, the basis for fixing the production norm required a fuller examination on the material available for the entire period.

Conclusion: The electricity-based computation of duty was not finally sustained. The matter was remanded to the Commissioner for fresh examination of the norm after giving the appellants an opportunity of hearing.

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