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TMI Blog2015 (8) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture M.S.Bar and TMT bars. The factory of the appellant was visited by the jurisdictional Central Excise Officers on 21.09.2011. Simultaneously the search was conducted in the factory premises of the appellant company, residence of Shri Rakesh Bhatnagar, General Manager of the appellant company, residence of Shri Karan Pal Singh, Chairman of the appellant company, guest house of the appellant company and residence of Shri Chirag Sharma, executive assistant to chairman of the appellant company. In the course of stock taking of finished goods, there was shortage of MS bar/TMT bar and bars vis-a-vis the balance recorded in RG-1 register and total duty on the shortage Rs. 47,71,695/-. In the factory premises, a computer was also recovere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per MT MS bar/TMT bar. Accordingly, they determined that in the factory of the appellant for production of one MT MS bar/TMT bar power consumption of 669.838 unit was required. By applying this norm to the total power consumption during the period from 1.4.2007 to 13.12.2012, the officers estimated the production of MS bar/TMT bars during this period. Out of this estimated production, the officers excluded the production recorded in RG-1 register and quantity of bars on which duty of Rs. 1,40,93,563/- had already been paid by the appellant and accordingly the officers determined that the appellant have to pay duty on the balance quantity of MS bar/TMT bar. It is on this basis that the Commissioner vide Order-in-Original dt. 31.4.13 confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,328/- is based only on assumption, that for production one MT of TMT bar/MS bar, 669.838 units of electricity is required, that this ratio has been determined by the department by assuming that the quantity of TMT bar/MS bar alleged to have cleared during the period March to June, 11 and August, 11 based on the various seized documents were manufactured during those months, that this assumption is incorrect, as even if allegation of clandestine removal based on the seized documents is assumed to be correct, that production may be of the previous months, that no experiment has been conducted by the department to ascertain power consumption required for production one MT of TMT bar/MS bar starting of the stage of scrap, that except for this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory and the guest house and this duty has been paid by the appellant. 7. Para 53 and 54 of the impugned order discuss the duty demand of Rs. 9,89,44,328/- based on power consumption and it is clear that this demand has been quantified by dividing the total power consumption during the period of dispute from 1.4.2007 to 13.12.12 by 669.835. According to the department, for production of one MT TMT bar/MS bar 669.835 units of electricity is required. This ratio has been determined by dividing the total power consumption during the period from March to June, 11 and August, 11 by actual production of bars during this period and the actual production of bars has been determined by adding production of these months as recorded in the RG-1 r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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