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TMI Blog2015 (4) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... be sustainable more so, when other than the ledger entries of SSSRM there is no other evidence of clandestine removal of MS Ingots by the appellants to SSSRM. When the studies regarding power consumption for per MT of MS Ingots produced has been conducted in respect of the appellant s unit by an Institute of the Government of India, there is no reason for discarding the report of that Institute and adopting the power consumption of 689 units per MT in respect of another induction thermal unit of M/s NIPL. There is absolutely no evidence of procurement of raw material scrap/ sponge iron or any other evidence regarding clandestine clearance and transportation of the finished products. In view of this, merely on the basis of power consumption of the appellant unit and an arbitrarily adopted ratio of 689 units MT which does not pertain to these units the allegation of unaccounted production of MS Ingots and its clandestine removal would not be sustainable. - Decided in favour of assessee. - Excise Appeal No. E/213/2009 in Misc. No. 51665/2014, Excise Appeal No. E/214/2009, Excise Appeal No. E/215/2009 in Misc No. 51666/2014, Excise Appeal No. E/216/2009, Excise Appeal No. E/265/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... higher power consumption in the case of RMB, JI and APSPL is on account of gross under reporting of the production of MS Ingots. In this regard it may also be mentioned that proceedings had been initiated against NIPL for recovery of duty from them on alleged unaccounted manufacture and clearance of MS Ingots and in this regard they had gone to the Settlement Commission and had settled their matter. 1.2 The Investigating officers by adopting the power consumption of 689 units per metric ton in case of NIPL estimated the production of MS Ingots in case of RMB, JI and APSPL on the basis of power consumption of these parties during the period from April 2002 to September 2006, December 2004 to September 2006 and April 2005 to September 2006 respectively, and accordingly, determined their production of MS Ingots during the above period as 38788.486 MT, 16792.957 MT and 17003.16 MT respectively. It is on this basis that the following Show Cause Notices were issued to RMB, JI and APSPL for demand of duty alleged to have been evaded in respect of unaccounted manufacture and clearance of MS Ingots. (i) SCN dated 8.6.2007 was issued to RMB for demand of duty of ₹ 9,32,49,161/- o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 units of electricity, that the ratio of 689 units of per metric ton of MS Ingots produced has been adopting from M/s NIPL, that there is absolutely no justification for adopting the power consumption ratio of 698 units per metric ton to the case of the appellants, inasmuch as each of these three appellants had got a study conducted in respect of their units by National Institute of Secondary Steel Technology of the Ministry of Steel, Government of India and based on the study conducted by this institute, the power consumption of RMB, JI and APSPL had been found to be 1427 units per MT, 1319 units per MT and 1795 units per MT of MS Ingots, that if this ratio of power consumption is adopted, there would be no duty demand against the appellants, that the Tribunal in the case of Motilal Agarwal Steels Pvt. Ltd. vs CCE Kanpur reported in 2010-TIOL-1036-CESTAT-Del has held that power consumption ratio of one induction furnace unit cannot be applied to other induction furnace, as the power consumption ratio in an induction furnace unit would depend upon various factors like age of the machinery number of heats during each day, frequency of power break downs etc., that the same view has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ton, that in the case of RMB, JI and APSPL, the power consumption per metric ton of MS Ingots produced has been inflated on account of under reporting of the production of MS Ingots, that the fact of duty evasion by unaccounted manufacture of MS Ingots and clandestine removal is clear from the entries regarding receipt of MS Ingots on certain dates in the private ledger account being maintained by SSSRM, that no credibility can be attached to the report of National Institute of Secondary Steel Technology regarding power consumption ratio in respect of RMB, JI and APSPL, that actual power consumption of these units is around 689 units per MT and based on this, their actual production would be much higher than the production reported by them. Sh. Sharma, therefore, pleaded that there is no infirmity in the impugned order. 5. We have considered the submissions from both the sides and perused the records. The evidence relied upon by the Department in support of duty evasion against RMB, JI and APSPL can be summarized as under: (i) Private ledger account recovered from SSSRM which contain entries regarding supply of MS Ingots by RMB, JI and APSPL to SSSRM on certain dates and in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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