TaxTMI 
TaxTMI 
2015 (1) TMI 992
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.... appellant M/s. Sunita Ispat Ltd. is engaged in the manufacture of MS ingots from scarp. The remaining three co-appellants are partners thereof. On 3.8.07 investigation was conducted in the factory of the appellant and at the residence of Shri Anil Kumar Agarwal, co appellant. During the course of investigation, it was found that there was a shortage of finished goods of 96.93 MT of MS ingots and from the residence of Shri Anil Kumar Agarwal certain katcha chits were found which were showing the purchase of scrap during the period from January, 2007 to March, 2007 indicating a purchase of about 437.58 MT of scrap. It was also observed that power consumption for one MT of MS ingots varies from 990 units to 3703 units per MT. Therefore, a cas....
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....irmed on account of shortage of finished goods which were removed clandestinely and various penalties on the appellants have been confirmed. Aggrieved from the said order, appellant is before me. 3. Learned Counsel for the appellant submits that as in this case the main case made against the appellant is that they have clandestinely manufactured excess quantity of MS ingots by utilizing the electricity and goods have been removed clandestinely, the said charge against the appellant has been set aside by the adjudicating authority holding that the quantum of electricity consumption on the basis of report of Shri N K Batra, Professor of IIT, Kanpur is not authenticated report and electricity consumption cannot be determined on the formula ....
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....nts in manufacture of final product i.e. MS ingots and same has been removed clandestinely and that charge made against the appellant for clandestine manufacture for excess manufacturing of goods by using excess electricity and same has been clandestinely cleared from the factory, both the adjudicating authority found that on the basis of electricity consumption, the charge of clandestine removal is not sustainable but for katcha slips found in the custody of Shri Anil Kumar Agarwal during the course of investigation is evident for procurement of inputs clandestinely and after manufacturing of finished goods, same has been cleared clandestinely. Therefore, duty demand of Rs. 13,70,150/- is to be confirmed against the appellant along with in....
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....s held by Honble Apex Court in the case of R A Casting (supra). Such charge of clandestine manufacture of goods and clandestine removal of the goods has already been held by the learned Commissioner as not sustainable in the facts of this case. Therefore, demand of Rs. 13,70,150/- is also not sustainable as the same has been confirmed on account of clandestine manufacture and clandestine removal of goods. Further, I find that in the show cause notice although it is discussed that certain katcha slips were found during the course of investigation in the custody of Shri Anil Kumar Agarwal, partner, for purchase of scrap on the basis of these slips, no demand of duty is proposed. As there is no duty demand in the show cause notice, therefore,....