TaxTMI 
TaxTMI 
2015 (10) TMI 2351
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.... : Assessee M/s. Satguru Cement Pvt. Ltd. (Satguru) and the co-noticees to the show cause notice as well as Revenue are in appeals against the impugned order. 2. The brief facts of the case are that the M/s. Satguru is the main party who is manufacturer of Ordinary Portland Cement (OPC). On 30.3.2007, a search was conducted by Director General Central Excise Intelligence wherein statement of Director Shri Badrilal Bansal, Manager Shri Dharmaendra Goyal were recorded. Certain loose papers for the period January, 2007 to March, 2007 were also received and seized which pertains to the clearance that apart from the clearance recorded in their statutory accounts. As per these slips, M/s. Satguru has cleared 18007.75 MT of cement during the....
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...., all the parties are before us. 3. As issue involved is common and all the appeals are arising out of common order, therefore, the same are disposed of by a common order. 4. Shri K K Anand, learned Counsel for the parties appeared before us and submits that prior to impugned proceedings, a search was also conducted in the factory of M/s. Satguru on 29.10.2004 wherein certain records were seized and on the basis of those records, a show cause notice dated 19.12.2005 was issued wherein it was alleged that power consumed to manufacture of 1 MT of cement, electricity is 72.6 units. After issuance of show cause notice, the learned Commissioner obtained Chartered Engineers certificate dated 23.2.2006 from Shri Prakash Chandra Jain who cer....
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....d by Centre of Energy Studies and Research in February, 2008 and the energy consumption was opined for manufacture of 1 MT of cement is 218.61 units of power. The annual capacity was calculated by Centre of Energy Studies and Research, Indore in March 2010 which states that annual capacity of the plant is 29280 MT. Therefore, he submits that the capacity of their plant is 29280 tons per annum. He submits that in remand proceedings in the earlier case, the adjudicating authority took the average of 72.36 units as proposed in the show cause notice and 222.9 units as per the report and arrived at a decision that requirement of 155 units of power to manufacture per MT of cement is appropriate and adjudicated the matter. The said order was chall....
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....ts that Shri Jagdish Agrawal, Director of M/s. Satguru in his statement has stated that their production capacity is 200 MT of cement per day and if same is assumed / taken as correct, in that case, the annual production capacity of the unit would be 60,000 MT per year. Therefore, the production capacity as well as electricity consumption corroborates the fact of clandestine removal of cement from their factory. In these circumstances, the impugned order is to be modified and the duty be demanded as proposed in their show cause notice. 7. Heard the parties. Considered the submissions. 8. In this case, admittedly the search was conducted in the factory premises of the assessee on 30.3.2007 and certain records were seized which pertaine....
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.... were searched once again by the DGCI on 30th March, 2007 and during the course of investigation at that time also, on comparison of power consumption and the actual production during January 2007 to March, 2007, the power consumption ratio was found to be 74 unit per M.T. which is close to the figure arrived at 72.36 Unit per M.T. However, it has not been explained in the Revenues appeal as to on what basis the ratio of 74 Units per M.T. had been determined. It is well settled law that merely on the basis of power consumption norm and that too when there are serious doubts about its correctness, duty demand cannot be confirmed against an assessee, when there is no other corroborative evidence of unaccounted purchase of raw-material and cl....
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....to the said argument required to be considered by the adjudicating authority. 10. We further find that expert Chartered Engineer opinion were obtained during the earlier proceedings where all the Chartered Engineers revealed that for manufacture of 1MT of Cement, the electricity required ranges between 212 to 230 units, which cant be the basis of demand. Alternatively, the demand could have been calculated on the basis of their installed production capacity in the factory which could have been considered by the adjudicating authority. 11. As we have already observed that in the impugned order, the only basis for the demand of duty is electricity consumption but no comments have been made by the adjudicating authority to demand on the....