2011 (1) TMI 1302 - SCH - Central Excise

Demand - Clandestine removal - excess production of MS ingots - 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.

Summary

The Supreme Court dismissed the Petition for Special Leave to Appeal filed by the Commissioner of Central Excise, Meerut against the Judgment and Order of the Allahabad High Court. The High Court ruled that excess production of steel ingots could not be estimated based solely on higher electricity consumption. Allegations of fictitious firms and income from share trading required supporting evidence for cross-examination. The extended period was not applicable due to lack of evidence of mis-statement, suppression of fact, or fraud by the assessee.