9911796707
TMI Blog1997 (12) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory accounts. It was also alleged that, based on note book recovered from transporter, that appellants had transported 18 consignments of ingots out of which only 4 consignments had been removed under the cover of gate passes. It was also found that though as per furnace specification given by the furnace manufacturers 650 units of electricity should be consumed for one M.T. ingots the electricity consumption ranged between 900 units to 1,000 units per M.T. The Collector of Central Excise on initiation of proceedings against them held that, based on consumption of electricity, they had removed substantial quantity of goods without payment of duty. 2. Arguing on behalf of the appellants the ld. Counsel submitted that no norms have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that other machines are installed in factory besides furnaces where power is consumed. He has however not given any findings as to how much power such machines would need. Similarly Collector has duly recorded plea of the appellants that specifications indicated by manufacturers of furnace are only for ideal conditions. While explaining the manufacturing process of ingots, the party has stated that unless the factory is closed furnace is also to be kept cool by circulating coil of the furnaces. Scrap is first shreaded in the shreading machine and thereafter transferred to the platform. Furnace is heated end crucible fired. The scrap is manually fed in the furnace and chemicals added. The slag that is formed is removed and more chemicals a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tested in laboratory and during this period the furnace continues to consume electricity as the scrap has to be kept melting and boiling. 6. While accepting that there is force in the arguments of the party Collector has not arrived at the findings as to what precise deviation from the specifications indicated by the manufacture of furnaces would result from such conditions which do not conform to ideal conditions the furnace is expected to run on the basis of 650 units of electricity 1 M.T. norm. He has also referred to statement of Shri Mukesh Kumar of Vandhana Steel Pvt. Ltd. according to whom requirements of electricity consumption per M.T. of ingots is about 1,100 units to 2,000 units. In spite of this he has not indicated why he ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be sustained on mere presumption however strong it may be unless there is corroborative evidence in support of the presumption. While it is true that clandestine removal is an activity which is carried out in stealth the circumstantial evidence at the same time must be such as would lead to preponderance of probability. We are therefore of the view that the matter would have to go back by way of remand since there are no findings based on records in support of conclusions arrived at by the Collector. We, therefore set aside the impugned order and remand the matter to the Commissioner of Central Excise for de novo decision after taking into account the pleas made by the appellants in regard to power consumption and thereafter arrive a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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