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TMI Blog2010 (3) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... Sl. No . SCN No. and date Period covered Duty demanded 1. V(17)171-Dem/96/2020 dated 20-9-96 April, 96 to June , 96 Rs. 6,06,020/- 2. V(15)198-Dem/96/2319 dated 1-11-96 July, 96 to September, 96 Rs. 3,62,952/- 3. V(15)36-Dem/97/371 dated 3-2-97 Oct. 96 to Dec. 96 Rs. 80,387/- 4. V(15)210-Dem/97/1409 dated 25-6-97 Jan, 97 to April, 97 Rs. 4,64,630/- Total Duty Demanded Rs. 15,13,989/- The basis for issue of the show cause notices was the order passed by the Collector, Kanpur in respect of M/s. Alfa Castings Pvt. Ltd. treating average electricity consumption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating to the period July 1996 to December 1996 on the ground that the average electricity consumption was below 1000 units per M.T. However, he confirmed the demand of Rs. 4,16,582/- relating to the period April 1996 to June, 1996 as against the demand proposed in the show cause notice amounting to Rs. 6,06,020/- and he also confirmed the demand of Rs. 40,649/- relating to the period January 1997 to April, 1997 as against the proposed demand of Rs. 4,64,630/-. He also imposed penalties on the appellant. The order of the original authority stands upheld as far as the demand of duty was concerned but the penalty was reduced to Rs. 90,000/-. 4.1 Learned Advocate appearing for the appellants assails the impugned orders on various grounds. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricity varies due to several factors. If the machines are run uninterrupted, the second heat will require less electricity than the first heat. If there was a power failure, then the material in process requires to be re-melted and the consumption of electricity goes up substantially. If the raw materials are of poor quality then the power consumption goes up. All these changes are applicable even in respect of the activities in the same factory premises. 4.5 In view of the above, to compare the electricity consumption of another unit which itself was having varying consumption pattern was not justified. 4.6 He also submits that no other evidence such as procurement of other raw materials, the man-power deployment, private records indic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns Casting Pvt. Ltd. in respect of which the test was done at the direction of the Tribunal. He relies on the decision of the Hon ble Supreme Court in the case of Triveni Rubber and Plastics v. C.C.E., Cochin reported in 1994 (73) E.L.T. 7 (S.C.) to contend that the production calculated on the basis of average consumption of electricity is in order. He also relies on the decision of the Tribunal in the case of L. Kant Paper Mills (P) Ltd. v. C.C.E., Kanpur reported in 1999 (109) E.L.T. 585 to contend that the power consumption is a valid factor In order to determine the quantum of production. 6. I have carefully considered the submissions from both sides. A reading of the show cause notices reveals that serious charges of unaccounted pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding of the show cause notices issued, it is apparent that there has been no investigation worth mentioning. If there was evasion, it was a case of missed opportunity in conducting investigation to unearth the evasion. No demand can be confirmed merely on. the basis of average consumption of electricity in another unit, by making serious allegation of suppression of production or clandestine removal without any corroborative evidence. 7.1 It is submitted across the Bar that the unit is closed since last several years and therefore, the question of conducting any experiment on the unit at this stage also does not arise. 7.2 The reliance placed on the decision of the Hon ble Supreme Court in the case of Triveni Rubber and Plastics is misp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been taken into account and no normal production was determined. Show cause notice was based merely on the basis of the order of the Collector in respect of another unit, confirmation of demand in de novo proceeding is based on the outcome of results of experiments conducted at Hans Casting Pvt. Ltd. which was done at the instance of the Tribunal. 8.1 The investigation in this case can at the best be considered as half hearted. The show cause notices making serious allegation were not founded on any worthwhile evidence. 8.2 As rightly pointed out by the learned Advocate for the appellants, the Tribunal in the case of U.P. Alloys Pvt. Ltd. has upheld the power consumption at 1100 units per MT which was based on test conducted in the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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