Clandestine removal demand based on electrical consumption was ...

Appellant's Right to Cross-Examine Restored in Electricity Consumption Dispute; Case Remanded for Fair Hearing.

August 7, 2024

Case Laws     Central Excise     AT

Clandestine removal demand based on electrical consumption was challenged. Average electricity consumption for certain periods was calculated. Cross-examination of officials whose statements were relied upon was denied, violating natural justice principles. The Tribunal consistently rejected electricity consumption-based quantification using Dr. Batra's formula. However, in this case, the Revenue calculated actual average consumption without using the formula. The appellant's argument regarding applicability of case law was rejected. The appellant was denied the opportunity to cross-examine persons whose statements were relied upon, contrary to the High Court's ruling allowing such cross-examination. The matter was remanded to the Adjudicating Authority to provide the appellant an opportunity for cross-examination.

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