2018 (4) TMI 956

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....etary concern and engaged in the manufacture of MS bars, MS flats etc. His brother is also having another proprietary firm doing same business but working independently. 3. A search was conducted at the business premises on 29.3.2011. The statements of Shri Anshu Kumar Dubey, Supervisor and proprietor were recorded. It was also found by the investigating team that the appellant was not registered with the Central Excise department and never paid any Central Excise duty. The appellant was not maintaining any record relating to the receipt of raw material, production and clearance of finished goods. The finished goods of value of Rs. 6,90,000/- in aggregate were seized. A few vouchers were also recovered. On the basis of seized material, t....

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....sed soon after the search. 8. According to learned Counsel, during the relevant period, due to financial problem, appellant required some advances from the bank, therefore, in order to get more finances from the bank, they have prepared fake sale invoices. In other words, there was no sale of such goods and it was only due to financial need, the appellant had aggravated their sale value by fabricating sale invoices to prove before the bank that they have high turn over. 9. Regarding the verification from the buyers, he submits that department has conducted inquiry with various parties who have denied any transaction with the appellant. This only proves that maximum invoices were fabricated and department could not unearth any evidence....

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....s were also issued for the period under consideration. Lastly, he justified the duty demand along with the penalty. 13. After hearing both the parties at length and on perusal of record, it appears that department has demanded the duty for the reason that there was high electricity consumption and on the basis of invoices / vouchers recovered during the period of search. 14. Regarding the electricity consumption, learned counsel also submitted that there was fluctuation / break down of electricity and each time furnace has to be restarted for which the extra electricity is required. We are satisfied that when there is fluctuation/ break down of electricity, for restarting the furnace, more electricity is required. 15. Regarding the....