Clandestine removal - Whether electricity consumption can be ...

Supreme Court dismisses appeal: Electricity usage not valid evidence for clandestine manufacturing claims.

February 26, 2024

Case Laws     Central Excise     HC

Clandestine removal - Whether electricity consumption can be considered as valid evidence of clandestine manufacture of taxable goods? - CESTAT upheld the findings of the Commissioner that there was a huge variation in power consumption per metric ton of ingots produced, and the Revenue did not provide concrete evidence to challenge this. The denial of CENVAT Credit based on consumption rather than the receipt of duty-paid inputs was found to be contrary to the CENVAT Credit Rules. - The Supreme Court dismissed the appeal of the Revenue on the ground that questions raised by the appellant were primarily questions of fact, not of law.

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