9911796707
TMI Blog2025 (1) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... y of workers and efficiency thereof and the said report has been discarded by this Tribunal in the case of R.A. Castings P Ltd. [ 2008 (6) TMI 197 - CESTAT NEW DELHI] which has been affirmed by the Hon ble Apex Court. Therefore, merely on the basis of excess electricity consumption by the appellant demand alleging clandestine manufacture and removal of goods is not sustainable. As it is declared law that on the basis of excess comsumption of electricity demand cannot be raised on the basis of assumption and presumption. The charge of clandestine manufacture and clearance thereof is to be proved by cogent evidence which Revenue failed to do so. Conclusion - The allegations of clandestine manufacture based solely on electricity consumption da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fice lighting. 5. Apart from usage of electricity in induction furnace the appellant used the said electricity from the said electricity connection in forehead crane, crushers, welding machine, pollution control equipment, supplied electricity to their labours' quarters located within the factory premises. 6. It is alleged against the appellant that in their monthly ER 1 return they have declared clearance of goods and on the basis of input/output ratio of electricity wherein for manufacture of 1 MT of M.S. Ingots more than 1000 units of electricity has been used therefore, it is alleged that whereas the appellant has shown consumption of electricity from 1150 to 1350 units per MT of finished goods produced. 7. The report prepared by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court. 12. The allegation against the appellant is not sustainable. Therefore, the impugned order is to be set aside and it is also submitted that whole of the demand is based on assumption and presumption and the demand of excess duty cannot be raised against the appellant on the basis of assumption and presumptions. 13. He also relied on the decision of Commission of Central Excise, Calcutta (Port) Vs. Orion Metal Pvt. Ltd. vide Final Order No. 76407/2023 dated 09.08.2023. 14. Therefore, impugned order is to be set aside. He also raised the issue of limitation as Show Cause Notice have been issued by invoking extended period of limitation. 15. On the other hand, Ld. Authorized Representative supported the impugned order. 16. Heard th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. In that circumstances, we do not find any infirmity in the impugned order dropping the proceedings against the respondent. Therefore, the appeal filed by the Revenue deserves no merit. Accordingly, the same is dismissed and the Cross Objection filed by the respondent is also disposed off in the above terms." 20. As it is declared law that on the basis of excess comsumption of electricity demand cannot be raised on the basis of assumption and presumption. The charge of clandestine manufacture and clearance thereof is to be proved by cogent evidence which Revenue failed to do so. In that circumstances we do not find any merit in the impugned order. The same is set aside. 21. In result appeal is allowed with consequential relief, if an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
