9911796707
TMI Blog2024 (6) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... . G.S. Hegde, Chartered Engineer who opined that 1000 units of power is required to manufacture 1 MT of MS ingots and 200 units of power is required to manufacture 1 MT of CTD bars. On the basis of said unit consumption of electricity, estimated quantity of ingots and CTD bars manufactured during the period has been calculated and on comparison of the said figures with the Statutory Registers maintained for production and clearance, the difference quantity alleged to be removed clandestinely without payment of duty. In the appellant s own case for earlier period i.e. from August 2001 to June 2007, this Tribunal has already decided the issue in SARAVANA ALLOYS STEELS PVT. LTD. VERSUS COMMR. OF C. EX., BANGALORE-II [ 2011 (2) TMI 1211 - CESTA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on consumption of electricity relying upon the expert opinion of Mr. G.S.Hegde, Chartered Engineer; that is 1000 units of power is required for manufacture of 1 MT of MS ingots and 200 units of power is required for manufacture of 1 MT of CTD bar. Consequently, on the basis of said theoretical power consumption, quantity of goods manufactured and cleared had been arrived at and demand was issued. The said show-cause notice was adjudicated and confirmed. Another show-cause notice was issued on 29.01.2007 on similar lines demanding duty for the period from November 2006 to June 2007 which was also adjudicated on 30.04.2008. aggrieved by the said order, the appellant filed appeals before this Tribunal and by order dated 25.02.2011, the appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso decision of Principal Bench of this Tribunal in the case of R.A. Castings Pvt. Ltd. Vs. CCE, Meerut-I [2009(237) ELT 674 (Tri. Del.)]. They have also relied upon the following judgments of this Tribunal where the Tribunal held that clandestine removal cannot be sustained merely on the basis of the technical expert opinion/report: i. Emmtex Synthetics Ltd. Vs. CCE, New Delhi [2003(151) ELT 170 (Tri. Del.)] ii. CCE, Chennai Vs. Dhavavilas (Madras) Snuff Co. [2003(153) ELT 437 (Tri. Chennai)] iii. CCE, Madurai Vs. Madras Suspensions Ltd. [2003(156) ELT 807 (Tri. Chennai)] iv. CCE, Coimbatore Vs. Sangamitra Cotton Mills (P) Ltd. [2004(163) ELT 472 (Tri. Chennai)] v. CCE, Coimbatore Vs. Velavan Spinning Mills [2004(167) ELT 91 (Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of said unit consumption of electricity, estimated quantity of ingots and CTD bars manufactured during the period has been calculated and on comparison of the said figures with the Statutory Registers maintained for production and clearance, the difference quantity alleged to be removed clandestinely without payment of duty. 8. We find that in the appellant's own case for earlier period i.e. from August 2001 to June 2007, this Tribunal has already decided the issue vide Final Order No.176-180/2011 dated 25.02.2011 reported as 2011(274) ELT 248 (Tri. Bang.)]. After analysing the principles of law on the issue, this Tribunal has observed as follows:- 21. It is settled principle of law that adverse conclusion cannot be arrived at against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by the assessee is more than Rs. 11 crores. Though, significant quantities were cleared as per these orders subsequent to the search in 2004, revenue has not been able to gather not even an iota of evidence for physical clearance of any quantity of ingots or CTD bars manufactured by the assessee clandestinely. There is no evidence of procurement of any quantity of raw materials without accountal. No evidence is available for transport of such goods cleared without payment of duty. There is no evidence of receipt of sale proceeds of any quantity of its final products without accountal. These would indicate that the basis for finding of evasion viz., the power consumption ascertained by Shri G.S. Hegde is totally incorrect. If the position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dgarh given in June-July, 2006; (iv) 650 units to 820 units/MT as per the Executive Director, All India Induction Furnace Association, New Delhi; (v) 851 units/MT in the case of Nagpal Steel v. CCE, Chandigarh reported in 2000 (125) E.L.T. 1147. 21. … … … 22. … … … 23. The Tribunal has consistently taken the view that wherever electricity consumption alone is adopted as the basis to raise demands, the order of the lower authorities have been held to be unsustainable in law and set aside and the Revenue had been directed to carry out experiments in different factories on different dates to arrive at the average to be adopted as a norm, which can be followed thereafter and the Revenue in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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