TaxTMI 
TaxTMI 
2016 (10) TMI 67
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....e in appeal against the common Order-in-Original No. 45/Commr/MRT-I/2013 dated 31.03.2013 passed by Commissioner of Central Excise, Meerut I. 2. Brief facts of the case are that the main appellant, M/s. Sunita Ispat Ltd., is engaged in the manufacture of MS ingots from scrap. The remaining three co-appellants are partners thereof. On 03-08-2007 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 69.93 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 t....
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....to manufacture MS ingots which have been cleared clandestinely, therefore the demand of duty of Rs. 13,70,150/- was confirmed along with interest and demand of Rs. 3,03,523/- was also confirmed 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 us. 3. The Revenue is in appeals aggrieved by dropping of the demand of Rs. 2,13,09,972/-, which was worked out on the basis of standard adopted by the Revenue of standard consumption of electricity per M.T of manufacture based on report of Prof.N. K. Batra of IIT, Kanpur. Further, it is submitted by the Revenue that the adjudicating authority has erred in dropping t....
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....company and the Directors, submits that 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 dropped 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 derived from that report as held by Apex Court in the case of R A Casting [2011 (269) ELT A 108 (SC)]. He further submits that as the major demand sought to be confirmed against the appellant on account of clande....
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.... SCN to be confirmed in the adjudication order. In these circumstances, it is prayed that impugned order except confirming demand of duty with regard to shortage of finished goods is required to be set aside. 5. On perusal of the Show Cause Notice, we find that in the Show Cause Notice two charges have been alleged against the appellant viz. (A) that for demand of duty of Rs. 2,13,09,972/- on account of excess electricity consumption and on the basis of excess electricity consumption, the appellant is manufacturing excess quantity of finished goods which have been removed clandestinely on the basis of Dr. N.K. Batra, Professor of IIT, Kanpur and demand of Rs. 3,03,523/- was proposed on the ground of shortage of finished goods found during ....
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....es on the appellants that goods have been removed clandestinely by the appellants but the charges of clandestine removal have been dropped and therefore, in these circumstances, it cannot be held that goods have been cleared clandestinely. Although the appellants has paid the duty that might be to settle the issue at that stage, but from the records it is not coming out that the charge of clandestine removal has been proved with any supportive evidence except the goods were found short during the course of investigation. In these circumstances, although the appellant is not contesting the duty demand, therefore the same is not issue before us. Further, we find that in this case, when the appellant has paid the duty but there is no demand of....