TaxTMI 
TaxTMI 
2023 (8) TMI 9
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....e at the quantification of the alleged clandestine manufacture and removal, the Department has gathered the details of electricity bill and based on the consumption of electricity, the quantity in question was arrived at. In the due course, the demand came to be confirmed by the lower Authorities. Being aggrieved, the Appellant is before the Tribunal. 2. The Learned Advocate appearing on behalf of the Appellant submits that the entire demand is based on the enquiry initiated with the manufacture and supplier of induction furnace which was installed in the factory of the Appellant. Based on the electricity consumption, the Department has worked out the alleged clandestine manufacture/clearance of the goods. No corroborative evidence i....
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.... to support the allegation that the clandestine manufacture has taken place. Mere reliance on the electricity consumption without any corroborative evidence towards excess purchase of raw materials so as to convert the raw materials into finished goods, will not help the Revenue to prove the case. 8. After going through these factual details it emerges that the only base on which the demand has been confirmed, is on account of the electricity consumption without any corroborative evidence whatsoever in any form. 9. In the case of Union Enterprises Vs Union of India cited supra, the Hon'ble Kolkata High Court has considered the Allahabad High Court's decision in the case of R. A. Casting on similar issue and has noted as under:- 14. The ....
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.... record, evidence or document to justify its allegations. The Tribunal has also considered the report of Dr. Batra, which has been relied upon for making the allegations that there was higher electricity consumption. It appears that Dr. Batra in his report has observed that for the production of 1 MT of steel ingots, 1046 units electricity required." [Emphasis supplied] 15. The Apex Court declined to interfere with the said order as the special writ petition challenging the order of the Allahabad High Court was dismissed [2011 (269) E.L.T. A108 (S.C.)]. Therefore, mere excess consumption of electricity without any corroborative evidence relating to the purchase of the raw material, conversion of the raw material into a final products and....
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.... shown in the books of account from non-core activities by manipulating books of account. On this ground, the show cause notice has been given by the Commissioner, Central Excise and Service Tax, Jamshedpur. (iii) Counsel appearing for the petitioner has relied upon several decisions, as stated hereinabove. It ought to be kept in mind by the respondents that the electricity consumption pattern can be a corroborative ground and not a substantive ground at all. Thousands of possibilities cannot be equated with one truth. The grounds, which are referred in the Order-in-Original, are in fact leading the respondents towards the highest probabilities and nothing beyond that to suspect that there is clandestine removal of the finished product b....