https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=114011 https://www.taxtmi.com/caselaws?id=114011 Demand - Clandestine removal - Assumption of clandestine removal based on power consumption - production based on ferro alloys consumption - shortage of ferro manganese - HELD THAT: - The norms for power was 670 kwh/per ton of billet for 10/12 t furnace and 630 kwh for 25/30t furnace. These norms regarding consumption of power have not been disputed by the Revenue. The Adjudicating Authority has come to the conclusion, merely on the basis of three furnaces found to be working by the visiting officers, that the Appellants had indulged in a systematic manipulation of records of power consumption. This finding is without any material brought on record. It has also been contended by the Appellants that the supply of electricity to their Sub-station is made from 132/33, KVA Sonic Sub-station on direct feeder. There is nothing on record to show that the power required by the Appellants to manufacture the quantity of ingots and billets alleged to have been manufactured by them had been supplied by Sonik Sub-station to the Sub-station at the Appellants end. Thus the Revenue has not succeeded in proving its allegation that the Appellants have manipulated their records of power consumption. Quantity of ferro alloys required to manufacture 1 ton of ingot/billet - As observed earlier, the Revenue has also not made any investigation in respect of another most vital raw material that is M.S. Scrap/Sponge iron. It has been held by the Tribunal in the case of Amba Cement Chemicals,[ 1999 (9) TMI 314 - CEGAT, NEW DELHI] , when the Revenue alleged the clandestine manufacture of cement on the basis of formula for use of lime stone per ton of cement; that No investigation is conducted in respect of other raw-materials such as coal, gypsum and clay which are also required for manufacture of cement... As no investigation is conducted in respect of other raw materials which are essential for the production of cement, therefore, the demand on the basis of that appellants suppressed the receipt of one raw material is not sustainable. Shortage of ferro manganese noticed by the Central Excise Officers when they visited the factory premises on 18-1-93, we are of the view that the submissions made by the Appellants regarding issue on 16-1-93 has not been properly considered by the Adjudicating Authority. Shri S.K. Shukla, Stores Clerk of the Appellants, in his statement dated 18-1-93 had deposed that entries in respect of materials after 11-1-93 had not been made in the records and the entries regarding material issued after 14-1-93 were also not made even though the materials were issued for consumption on verbal request. This aspect requires to be examined by the Adjudicating Authority. We, therefore, remand this aspect for re-consideration of the jurisdictional Adjudicating Authority. Thus the demand of duty as confirmed against the Appellants and penalty imposed on them are set aside. The issue regarding shortage of 6943 kg. of ferro manganese is remanded to the jurisdictional Adjudicating Authority for being adjudicated afresh in accordance with law. Case-Laws Central Excise Thu, 29 Jul 2004 00:00:00 +0530