2023 (8) TMI 1609 - AT - Central Excise

Clandestine manufacture and removal - discrepancies between declared production and electricity consumption data - Extended period of limitation - HELD THAT - On similar facts this Tribunal in the case of RA CASTINGS PVT. LTD. VERSUS COMMISSIONER OF C. EX. MEERUT-I 2008 (6) TMI 197 - CESTAT NEW DELHI has held that on technical data for consumption of electricity by the report of IIT Kanpur cannot be relied upon to determine the electricity of consumption per MT by the ingot manufacturer. There are no infirmity in the impugned order dropping the proceedings against the respondent. Therefore the appeal filed by the Revenue deserves no merit. Accordingly the same is dismissed.

Summary

The Appellate Tribunal CESTAT Kolkata, comprising Hon'ble Mr. Ashok Jindal and Hon'ble Mr. K. Anpazhakan, reviewed an appeal by the Revenue against an order where proceedings against the respondent, a manufacturer of M.S. Ingots, were dropped. The case involved allegations of clandestine manufacturing and clearance of goods without duty payment, based on discrepancies between declared production and electricity consumption data, supported by a technical report from IIT Kanpur.

The Adjudicating Authority had previously dismissed these proceedings, citing a Tribunal decision in R.A. Castings Private Limited Vs. CCE, which ruled that technical data from IIT Kanpur was insufficient to determine electricity consumption per MT for ingot manufacturers. This decision was upheld by the Hon'ble Apex Court.

The Tribunal found no fault in the Adjudicating Authority's decision to drop the demand, affirming that the Revenue's appeal lacked merit. Consequently, the appeal was dismissed, and the respondent's Cross Objection was disposed of in similar terms. The operative part of the order was pronounced in open court.