TaxTMI 
TaxTMI 
2014 (2) TMI 501
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....7-328/KOL/2009 dated 11.06.2009, the Tribunal remanded their case for de-novo decision on the same ground, as had been recorded in case of M/s. Bharat Ingots & Steel Company Pvt. Ltd. under Order No.A-1232-1234/KOL/2008 dated 10.12.2008. In case of M/s. Bharat Ingots (cited supra), the ld. consultant appearing for the appellant had submitted that the reports from All India Furnace Association, mentioned in the show cause notice, were not given to them. Besides, various case laws cited by them, were not considered by the ld. Adjudicating Commissioner. Accordingly, the case was remanded back by the Tribunal to the ld. Adjudicating Commissioner to pass fresh order. The ld. Adjudicating Commissioner after following the Tribunals direction, decided the case of the Applicant afresh, vide Order dated 16.06.2010. The present petition is filed against this Order of the Adjudicating Commissioner. 4. Ld. Advocate appearing for the Applicant has submitted that the Department merely on the basis of technical report of Dr. Batra of IIT, Kanpur, had taken the norm of 1000 KVA units of electricity to produce one Metric Tonne of M.S. Ingots, while quantifying the suppressed production and clandes....
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....ound of the demand is that CBEC constituted a Nucleus Group to study sectoral trends in Central Excise Revenue vis-`-vis the rate of industrial growth. The Group selected M.S. Ingots Sub-Sector of Iron And Steel Industry for closure scrutiny, and studied the pattern of electricity consumption of the units and matched the same with the production recorded by the units producing M.S. Ingots. As the assessee did not provide the details of electricity consumed in the manufacture of M.S. Ingots, therefore, the load of induction furnace worked out and sanctioned by Jharkhand State Electricity Board, was procured, which indicated the total load of 3600 KVA for furnace. The total load of the Plant, as indicated in the electricity bill was 4000 KVA. It, therefore, appeared that the electricity consumed for the induction furnace and the rolling mills, was in the ratio of 9:1. Out of the total electricity consumed by the assessee, for the induction furnace, it revealed that electricity used in the production of one Metric Tonne of M.S. Ingots is fairly in excess of 1000 units. It is stated that during the hearing, the ld. Adjudicating Commissioner specifically asked the assessee to controvert....
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.... at all on actual basis. For example during July05, they consumed 18,63,120 units of electricity and produced 763.900 MTs. of M.S. Ingots, whereas in October'05 and November'05, they consumed 15,97,140 units and 16,03,200 units & produced 953 MTs. & 926.300 MTs. of M.S. Ingots respectively (Annexure-B5 to the SCN). It is also seen that average consumption of electricity for production of one MT of finished goods was found to be 985 units in March'05 (Annexure-B4 to the SCN) and 828.24 units in May01(Annexure-B1 to the SCN), which match with the electricity consumption yardstick, as laid down by IIT Kanpur, but during earlier periods, such consumption was 2409 units during the year,03-04 and 2165 units during the year' 04-05(Annexure-A to SCN), though nature of raw material mix and other parameters had not changed. It is the finding of the ld. Adjudicating Commissioner that on the days when there was substantial power consumption, the production report in the RG-I was found to be nil. From the aforesaid findings, the ld. Adjudicating Commissioner arrived at the conclusion that the RG-I maintained by the assessee does not reflect the actual production. He has further observed tha....
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....-Mum.), after considering case laws on the subject including that of Bhagawati Steels case and RA Castings case(supra), observed as follows: 11. In the present case, prima facie, at this stage, it emerges from the order passed by the Adjudicating Officer that the allegation against the Appellants was of suppression of actual production; a clandestine removal of goods and of the fabrication of record. Prima facie at this stage that finding has been established by the Adjudicating Officer. The Adjudicating Officer has recorded that the actual electricity consumed between the period 16 December, 2003 and 24 March, 2008 was 7,91,87,789 units. On this, there is no dispute since that forms part of the record of the M.S.E.B. The actual production has been worked out at 89,887.239 M.T. on the basis of the Appellants letter dated 20 October, 2005 to the manufacturer of the Induction Furnace to the effect that 925 units per metric tonnes were consumed upto 20 October 2005 and a letter dated 24 October, 2005 stating that about 860 units per metric tonnes have been consumed after that date. The present case is based on the documentary materia....