1998 (3) TMI 298 - AT - Central Excise

Summary

Issues involved: Determination of production of steel ingots based on power consumption and the basis for determining power consumption.

Summary:
The Appellate Tribunal CEGAT, New Delhi, considered three appeals together where the main issue was whether power consumed could be used to determine the production of ingots and how to determine power consumption. The appellants, engaged in steel ingot manufacturing, were investigated for underreporting production. The adjudicating authority relied on power consumption to determine ingot production, using a norm of 650 units per metric ton. The appellants argued that power consumption was not solely for the furnace and that the decision was arbitrary. The Tribunal noted a previous case where detailed findings were required to support conclusions on power consumption deviations. The Revenue argued that production determination considered factors beyond electricity consumption. However, the appellants contended that the entire demand was based on power consumption. The Tribunal found insufficient evidence to support the Collector's conclusion and remanded the case for a fresh decision. The Collector was directed to consider pleas on power consumption and conduct experiments if necessary to determine power consumption for ingot production. All other matters in the appeals were also to be decided afresh, allowing the appellants to provide additional evidence.

Therefore, the Appeals were allowed by way of remand for further consideration and decision.