2019 (8) TMI 424

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...., after going through the impugned order and after hearing the learned A.R. appearing for the Revenue. 2. As per facts on record, the appellant is engaged in the manufacture of sugar and molasses in their factory situated at DSM Sugar Compound, Kashipur. A part of the factory has been leased out by them to M/s S.G. Steel, who are engaged in the manufacture of ingots. The appellants also have a power generation plant in their factory, which is mostly operated during the crushing period i.e. from November to April. The excess electricity generated by them was being diverted to M/s S.G. Steel for their use in the manufacture of ingots. 3. M/s S.G. Steel addressed a letter to their jurisdictional Central Excise Authorities indicating that....

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....the penalty imposed upon the appellant, the relevant paragraph from the impugned order is reproduced below:- "It is observed that M/s DSM Sugar, Kashipur were unable to spare electricity for M/s S.G. Steels thus M/s DSM knew fully well about their capability of generating power and the quantum of power available for supply to the ingots manufacturing plant. The ingot manufacturing plant i.e. M/s S.G. Steels was wholly dependent upon the power to be supplied by M/s DSM Sugar Kashipur and that the inadequacy of power with M/s DSM Sugar, Kashipur in the face of having installed another furnace is indicative of connivance of M/s DSM Sugar Kashipur with M/s S.G. Steels to fraudulently avail the benefit of the exemption under Notificatio....