2018 (1) TMI 914

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....of Central Excise Duty as well as imposition of penalties on various persons. Revenue has also filed an appeal contending that the demand confirmed in the impugned order has omitted the month of November, 2001, which also falls within the extended period of 5 years. 2. The appellant-assessee is engaged in the manufacture of M.S. Ingots. Department received an intelligence regarding suppression of production by the manufacturers of M.S. Ingots in the form of a technical opinion of IIT Kanpur that an induction furnace unit should consume electricity in the range of 555 to 1046 units for the manufacture of 1 MT of MS ingots. To verify the same, the departmental officers called for the balance-sheet, income ledgers, documents relating to other....

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.... ii) The raw material purchases, as well as sales of final products were duly accounted by the assessee for in its records. iii) There was no evidence of any receipt, by the appellant, of unaccounted raw material. iv) There was no evidence, or allegation, of disposal, by the appellant, of unaccounted ingots. v) There was no evidence of any clandestine transportation either of inputs or of finished products, and no seizure thereof either. vi) Electricity consumption depended on various factors. vii) Consumption of electricity could not, therefore, be the sole basis to allege clandestine removal. viii) The requisite evidence to establish clandestine removal, was not forthcoming. ix) The report of Prof. N.K. Batra could not be r....

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....learances for the month of November, 2001 also in the demand. He submitted that the share and commodity trading are nothing but fictitious transactions shown to cover up the receipts from clandestine clearances. The price of the final product has been shown by the appellant less than the cost of the item. Accordingly, he submitted that the case has been made not only on the basis of the report of IIT Kanpur; but other evidences also. 6. We have heard both sides and perused appeal record. We find that the Revenue's entire case is based upon the investigations conducted by them in respect of entries made in the balance-sheet. The said entries reflect income of the appellant made through other businesses like share trading, sales commission a....

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....ds of ingots alleged to have been clandestinely produced and sold by the appellant s. The entire action of the Revenue was held to be without jurisdiction. 7. The said decision of the Tribunal in the case of R.A. Casting Pvt Ltd.(supra) Stands confirmed by the Hon'ble Allahabad High Court, when the appeal filed by the Revenue was rejected. Further, the appeal by the Revenue before the Hon'ble Supreme Court also stands rejected. The said decision of the Tribunal was followed in several cases including in the case of Commissioner of Cusoms and Central Excise Vs Venus Allows Pvt Ltd. [Final Order No.A/348/2012-Ex(DB) dated 20.03.2012] as also in the case of R.K. Polytubes & Ors. Vs CCE, Raipur [Final Order No. A/50276-50277/2014-Ex(DB) dated ....