TaxTMI 
TaxTMI 
2018 (10) TMI 5
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...., their input output ratio. The ratio declared was 1.1 MT of scrap for manufacture of 1.0 MT of M.S. Ingots. The Department noticed that during the period April, 2015 to March, 2016, the appellant accounted for production of M. S. Ingots lesser than what would arise as per above formula by consumption of the scrap accounted by the appellant. The Department formula the opinion that the appellant had not accounted their production of final products in full and proceeded to demand differential Central Excise duty amounting to Rs. 15,86,161/- on the presumption of short accountal of production of 485.25 MT of M.S. Ingots. After issue of show cause notice, the Original Authority, vide his order dated 06.06.2017, confirmed the demand of duty but ....
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..... 5. Ld. AR justified the impugned order and submitted that the ratio of 1.1 MT of raw material for 1 MT of ingots has been declared by the appellant in his ER-5 returns and hence such a ratio is binding on the appellant. 6. Heard both sides and perused appeal record. 7. The dispute in the present case is regarding the demand for duty raised on the basis of the input output norm declared by the appellant in their ER-5 returns. The appellant has declared the ratio of raw materials required to be used in the manufacture of finished product as 1.1 MT of raw material will be required to produce 1 MT of finished products. By applying such calculation Revenue came to the conclusion that the appellant has failed to account the full quantum of g....
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....hich enables Revenue to use input/output data given in ER-5 return for charging Central Excise duty on estimated goods that should have been manufactured by the appellant. I, further find that Hon'ble High Court of Allahabad has laid down the principle in the said case (supra) referred to above and relied upon by the ld. Counsel for the appellant. The principle laid down is that if the provisions of erstwhile Rule 173E of Central Excise Rules, 1944 are invoked then it was mandatorily required to fix norm for electricity consumption, notify them to manufacturers and thereafter ascertain reasons for deviations, and after taking into account the consumption of various inputs, requirements of labour, material, power supply and conditions for ru....