TaxTMI 
TaxTMI 
2014 (2) TMI 719
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....alty of equal amount against the notice. A personal penalty of Rs.1.50 crore has also been imposed upon Shri Sanjay Agarwal, Director. 2. Briefly stated the facts of the case are that M/s. Dadu Steel and Power Ltd. are engaged in the manufacture of M.S. Ingots falling under chapter heading 72061010 of Central Excise Tariff Act, 1985. During the course of audit of the books of accounts of the appellant's unit for the period October 2007 to March, 2009, it was observed that average consumption of electricity towards production of finished goods i.e. M.S. Ingots showed abnormal variation in each month. Normally for the manufacture of MS ingots in an induction furnace with raw materials like sponge iron, pig iron and waste and scrap around 7....
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....h the book balance recorded. 4. On verification of the purchase invoices for the year 2008-09, it was observed that average weight of ingot mould of size 3.5x4.5x69 was calculated as 588 kgs. The appellants purchased 129.855 MT of ingot mould during the year 2007-08 and 384.880 MT during the year 2008-09, which when converted into numbers worked out to 875 numbers of ingot mould. Only 72 ingots moulds were found physically available in the factory premises of the appellants. It is alleged that the appellant No.1 appeared to have utilized the remaining 803 numbers of ingot mould for the production of their suppressed production of MS ingot weighing 25953 MT of MS ingot. 5. Further they have also shown 'other income' to Rs.39,41,860/- d....
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....ted assumptions. The finding is thus vitiated by an error of law. He also contested that 830 units as claimed by the Revenue without carrying trial balance was not sustainable. He contended that the department has contended in the other matter of Maruti Ferrous Pvt. Ltd., they have presumed 650 units as standard norms and in the matter of Shubh Labh Ispat P. Ltd., they have presumed 700 units as standard norms and in the matter of Mamta Electro Castings (P) Ltd., they have presumed 700 units, the department was not sure for production of 1 MT of ingots. He also refers to the judgement in the case of R.A. Castings Pvt. Ltd. vs.CCE, Meerut-I-2009 (237) ELT 674 (Tri.-Del.). 7. Ld. DR contested the submissions of the appellants and reiterate....
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.... showing consumption of unit ranges 773 to 1752. For a unit to be economically viable, it is understood that each manufacturer will take abundant precaution that no loss of power due to wide fluctuation in consumption occurs otherwise cost of finished goods becomes so high that there are losses. Continued higher consumption in almost all the months (sample details in para 3) is clear indicative of motive of the appellants to suppress the production. 9. The Revenue has pointed out to a judgement of the Tribunal of the West Zonal Bench in the case of Sridhar Casting Pvt.Ltd. vs. CCE, Nagpur-2012 (281) ELT 270 (tri.) wherein the Tribunal in para 19 and 21 has held as under:- 19. In other c....
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....to Shridhar Castings case. The difference is less than 2% of 1046 but cannot be neglected, considering the enormous quantum of energy found to have been consumed in excess without accountal during the period of dispute in each case. This aspect will be borne in mind. We also note that, in all cases where the demand of duty is based on electricity consumption per MT of steel ingots, there are also materials on record to corroborate the evidence of unaccounted excess consumption of electricity. This is why we are not inclined to follow R.A. Castings as a precedent, the final order in R.A. Castings case wherein no corroborative evidence was found by the Bench. 21. The Revenue's case is further supported by the Madras High Court's judgment i....