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2014 (2) TMI 719 - AT - Central ExciseDuty demand - Clandestine removal based on evidence produced by the Revenue - Held that:- steel units engaged in the manufacture of MS ingots are using electricity as one of major raw materials which is controlled by the Electricity Board situated in their respective jurisdiction. Accounting of electricity is very proper and main indicator of production of steel ingots. Normal electricity consumption for production one MT of M.S. ingot usually ranges between 700 to 870 units. Details in para 6 supra indicate the fact. We have noticed wide variation of consumption of electricity showing consumption of unit ranges 773 to 1752. For a unit to be economically viable, it is understood that each manufacturer will take abundant precaution that no loss of power due to wide fluctuation in consumption occurs otherwise cost of finished goods becomes so high that there are losses. Continued higher consumption in almost all the months (sample details in para 3) is clear indicative of motive of the appellants to suppress the production. Tribunal has taken into account all the factors which prima facie points out towards suppression of production. It is also observed that when department has discharged initial burden of proof showing excess consumption of electricity later the appellant have no valid explanation to justify the excess consumption of electricity. Mere fluctuation in the electricity supply or the quantity of raw materials etc. are not reasons will make such large variation of consumption of electricity. The appellants pleading that there is no evidence of unaccounted procurement of raw materials and unaccounted sale of finished goods, transportation of these goods are not sustainable because the person, who indulged in the clandestine removal of goods, he will not keep the records thereof. Revenue has prima facie proved preponderance of probability is in their favour and it is a fit case where some pre-deposit has to be ordered for hearing their appeals. Accordingly, we order that pre-deposit of Rs.1.50 crore will be made by the appellants within twelve weeks from today as a condition to hear their appeals. Subject to above deposit, pre-deposit of balance amount of dues and entire amount of penalty imposed on both appellants shall stand waived and its recovery stayed during pendency of the appeals - Conditional stay granted.
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