TMI Blog2008 (7) TMI 773X X X X Extracts X X X X X X X X Extracts X X X X ..... kumar, Advocate, for the Appellant. Smt. Bhagya Devi, SDR, for the Respondent. [Order per : P. Karthikeyan, Member (T)]. - In one of the captioned appeals M/s Rattan Steel Works (RSW) challenges the demand of duty of Rs. 23,51,646/-, confiscation of its land, buildings, plant and machinery and imposition of penalty of Rs. 5,00,000/- on various grounds. Shri Harjit Singh, one of the partners of RSW, has filed an appeal against imposition of a penalty of Rs. One lakh on him. Revenue has filed an appeal against the same impugned order seeking to impose penalty on RSW u/s 11AC, demand interest u/s 11AB from it and to determine the assessable value as the net sale proceeds denying benefit under Section 4(4)(d)(ii) of the Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f partners of the assessee firm were retracted immediately after recording them. All statements lacked corroboration. Investigations were completed in April 1997 and Show Cause Notice issued on 11-8-98. Demand was time barred. Power consumption alone could not be basis for demand. 4. Heard the parties. 5. We find from the records that in the instant case, the crucial evidence for suppression of production is excess and unexplained consumption of electricity by RSW. Adopting the consumption of power for producing one tonne of MS rounds in 1993-94 as per the assessee s own records, the production of final product recorded is 611 tonnes less in 94-95 and 1473 tonnes less in 95-96 (upto 8/96). There is no valid or convincing explanation for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electricity Board. The only plausible explanation to the excess consumption of power is its use in production of MS rounds. It is not necessary that clandestine clearance has to be established with all possible reasons. No authority has fixed such formula for universal application in all cases. The apex Court held in Triveni Rubber Plastics [1994 (73) E.L.T. 7 (S.C.)] that consumption of power is an important factor to find production and duty due. 6. We find that the investigation in this case had been completed in April 97 and Show Cause Notice issued only in August 1998. The Commissioner did not address the plea of the assessee that the demand was barred by limitation. We find that several statements had been recorded by the investi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
