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2011 (2) TMI 839 - CESTAT, DELHIDemand and Penalty - Clandestine removal of M.S. Ingots - Department contended that the appellant average power consumption per M.T. should be 1100 units and it is on this basis the production of M.S. Ingots in the case of both the appellants has been estimated and after comparing the same with the production recorded in their RG-1 register, the allegation of under reporting of production and clandestine clearance of unreported production, without payment of duty has been made. No experiment for determining the average power consumption for production of one M.T. of M.S. Ingots has been conducted and the figure of 1100 per M.T. has been adopted from some experiment conducted in the unit of M/s Hans Casting - As the power consumption of one induction furnace unit cannot be compared with the power consumption of other unit without ascertaining the type of furnace, the technology used, the age of the machinery, power supply pattern and, the type of scrap used and for this, the only reliable method is to conduct actual experiment in the unit and ascertain the average power consumption per M.T. which has not been done in these cases - Held that adopting of power consumption norm of another unit is arbitrary and the confirmation of duty demand on this basis would not be sustainable - Decided in favour of assessee.
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