TMI Blog2014 (2) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07 1699200 1166.25 1457 Oct-07 1022350 1322.02 773 Jan-08 1808850 1245.94 1452 Jan-09 1679900 1581.9 1062 Aug-09 1785500 1586.46 1125 Feb-10 1588000 1624.22 978 3. During physical verification of their finished goods and raw materials carried out under panchnama dated 30.11.2009, it was observed that there was a shortage of 18.600 MT on the stock of MS ingots upon comparison of physical stock with the book balance recorded. 4. On verification of the purchase invoices for the year 2008-09, it was observed that average weight of ingot mould of size 3.5x4.5x69 was calculated as 588 kgs. The appellants purchased 129.855 MT of ingot mould during the year 2007-08 and 384.880 MT during the year 2008-09, which when converted into numbers worked out to 875 numbers of ingot mould. Only 72 ingots moulds were found physically available in the factory premises of the appellants. It is alleged that the appellant No.1 appeared to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR contested the submissions of the appellants and reiterated findings in the Order-in-Original. He further referred to study report which reported that an Induction Furnace should consume electricity in the range of 555 t o1046 units. He also referred to an article written by Shri R.P. Varsheny, Executive Director, All India Induction Furnace Association, New Delhi, the power consumption for manufacture of one MT of MS ingots has been shown in the range from 650 units to 820 units, depending upon the percentage mix of sponge iron and scrap. They also referred to Tribunal s judgement in the case of M/s. Sridhar Castings Pvt. Ltd. vs. CCE, Nagpur-2012 (281) ELT 270 (Tri.-Mum.). Hon ble Tribunal has distinguished the Tribunal s judgement in R.A.Casting-2009 (237) ELT 674 (Tri.-Del.) 8. We have gone through the facts of the case. The main issue involved in this appeal is regarding allegation of clandestine removal based on evidence produced by the Revenue as mentioned above. We have also gone through the judgement quoted by them. It is observed that steel units engaged in the manufacture of MS ingots are using electricity as one of major raw materials which is controlled by the Ele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 555-1026 KWH per MT. No doubt, in these cases where the expert s opinion was misquoted, there is slight overestimation of suppressed production of ingots when compared to Shridhar Castings case. The difference is less than 2% of 1046 but cannot be neglected, considering the enormous quantum of energy found to have been consumed in excess without accountal during the period of dispute in each case. This aspect will be borne in mind. We also note that, in all cases where the demand of duty is based on electricity consumption per MT of steel ingots, there are also materials on record to corroborate the evidence of unaccounted excess consumption of electricity. This is why we are not inclined to follow R.A. Castings as a precedent, the final order in R.A. Castings case wherein no corroborative evidence was found by the Bench. 21. The Revenue s case is further supported by the Madras High Court s judgment in the case of Alagappa Cements Pvt. Ltd. v. CEGAT C.C.E., Trichy [2010-TIOL-770-HC-MAD-CX = 2010 (260) E.L.T. 511 (Mad.)] cited by ld. JCDR. In that case, the party was alleged to have clandestinely manufactured and removed Portland cement without payment of duty. Their records ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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