TaxTMI 
TaxTMI 
2026 (2) TMI 285
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....ecific intelligence that Marie was resorting to clandestine removal of goods to evade central excise duty, the officers of the Directorate General of GST Intelligence [DGGI], Jaipur searched the factory of Marie, the residence of its Director Shri Agarwal, Marie's clearing forwarding agency M/s. Shubham Agency, the supplier of betelnuts to Marie M/s. Agarwal & Company, and a few other premises on 10th and 11th November 2017. 3. In the factory, they found excess (unaccounted) stock of raw material and finished goods valued at Rs. 68,04,678/- and seized the excess stock and issued a SCN dated 10.5.2018 in respect of the seized goods. 4. In the residence of Shri Agarwal, they found unaccounted perfume/compound worth Rs. 15,79,200/- which they seized and issued an SCN dated 11.5.2018. 5. In the business premises of the C&F Agent M/s. Shubham Agency, therefore, excess stock of sweet supari and seized it and issued SCN dated 8.5.2018. 6. In the premises of M/s. Agarwal and Company, the betelnut supplier, excess stock of raw betelnuts valued at Rs. 13,20,800/- was found and seized. 7. In the business premises of M/s. Singhal's Flexi pack- the supplier of the packing materia....
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.... (ix) There is no evidence of any cash flow from any buyers to Marie. (x) The demand has been raised solely on the basis of electricity consumption and hence it is a hypothetical demand and it cannot be sustained. (xi) Marie also had a Diesel Generator set which is also recorded in the Panchnama dated 10/11.11.2017 which also supplied electricity. This factor was ignored. (xii) While computing the estimated production, other factors such as the number of machines during different periods, the capacity of the machines, the number of skilled/unskilled labourers and employees have been ignored. All these are important factors influencing the production. (xiii) The demand of duty, interest and the penalties on the appellants therefore, cannot be sustained and need to be set aside. Submissions on behalf of the Revenue 13. Learned authorized representative for the Revenue vehemently supported the impugned order and submitted as follows: (i) The appellant's contention that the investigation which was initiated after the introduction of GST in respect of the central excise duty payable before the introduction of GST lacks credibility is ....
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.... entry 84 of the Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1955), the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), and the Central Excise Tariff Act, 1985 (5 of 1986) (hereafter referred to as the repealed Acts) are hereby repealed. (2) The repeal of the said Acts and the amendment of the Finance Act, 1994 (hereafter referred to as " such amendment " or " amended Act ", as the case may be) to the extent mentioned in the sub-section (1) or section 173 shall not- (a) revive anything not in force or existing at the time of such amendment or repeal; or (b) affect the previous operation of the amended Act or repealed Acts and orders or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the amended Act or repealed Acts or orders under such repealed or amended Acts: Provided that any tax exemption granted as an incentive against investment through a ....
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.....2/- (for 3. 5 g) and Rs.5 (for 8 g), the average weight of supari was considered as 3.6875 g per pouch. Thereafter, the actual electricity consumption in different months was taken from the electricity bills and the production of supari in kg reported in the Marie's returns in ER-3 and ER-1 was considered. It must be pointed out that during October 2014 to March 2017, Marie had filed quarterly returns and therefore, only quarterly production of supari was available and thereafter monthly production of supari was available. However, the electricity bills were issued during the entire period every month. 21. For the period when quarterly returns were filed, the total electricity consumption in the three monthly bills of the quarter was added and the total quantity of supari produced in kg as per the return was divided by the total electricity consumed in units (KWH) to arrive at quantity of supari in kg produced per unit of electricity consumed. For the period when monthly returns were filed, the quantity of supari produced per unit was reckoned. Therefore, in Annexure A to the SCN which gives the calculation, there are quarterly ratios upto April 2017 and monthly ratios from May....
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....gned orders, the respondents filed appeals before the Customs, Excise & Service Tax Appellate Tribunal, New Delhi. The Tribunal observed that it is settled principle of law that the electricity consumption cannot be the only factor or basis for determining the duty liability, that too on imaginary basis, especially when Rules 173E mandatorily requires the Commissioner to prescribe/fix norm for electricity consumption first and notify the same to the manufacturers and thereafter ascertain the reasons for deviations, if any, taking also into account the consumption of various inputs, requirements of labour, material, power supply and the conditions for running the plant together with the attendant facts and circumstances. The Tribunal further observed that no experiment have been conducted in the factories of the appellants for devising the consumption norms of electricity for producing on MT of steel ingots. Tribunal also observed that the electricity consumption varies from one heat to another and from one date to another and even from one heat to another within the same date. Therefore, no universal and uniformly acceptable standard of electricity consumption can be adopted for de....