TMI Blog2016 (10) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... ly electricity consumption for few months in 2008-2009 and certain calculation based on purported average electricity used for production of 1 M.T. of final product. We are also not very clear as to how 91 units are considered as standard for calculation as nothing is recorded regarding the nature of machinery and the consumption capacity of said machinery. We find that the calculation made is completely presumptive. There is no evidence relating to procurement of extra unaccounted raw materials/inputs, deployment of additional labour, unaccounted transportation/sale, identity of any of the buyers of such goods, etc. Even where certain verifications were made regarding trading activities, no substantial evidence could be attributed to al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,512/- was made with a proposal to impose various penalties on them. The case was adjudicated and vide the impugned order, the ld. Commissioner dropped all the proceedings against the respondent. Aggrieved by this order, the Revenue filed these appeals. 3. We have heard the submissions made by both the sides and perused the appeal records. 4. We found that as per the grounds of appeal, there are three main points based on which the demand was sought to be sustained against the main respondent- (A) The unusual deviation of electricity consumption figures for different months; (B) Huge amount shown in the Balance Sheet on account of trading activity of grey cloths without any proper supporting bills and; (C ) The un-explained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itten and oral defence putforth number of reason for the fluctuations in electricity consumption in their factory, such as consumption of electricity for the other purposes viz. workshop situated in the factory, straightening machine, quality of raw materials, availability of skilled/unskilled man power, fluctuation of voltage of input electricity, etc. These reasons appear to be plausible especially in absence of any standard norms fixed and for lack of physical norms fixed for the mill of notice to ascertain the actual consumption of the electricity. Further, there is plethora of the decisions of higher formations wherein it has been categorically held that no allegations of suppression of production and clandestine removal may be framed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tangible evidence, the financial transaction as per the Balance Sheet and other financial dealings cannot be questioned without any substantial evidence to make a demand of central excise duty based on the interference and presumption. The same is not legally sustainable. Even for argument, it is accepted that the some of their trading activities are bogus, it is necessary to show that in such transaction, the real product involved is clandestinely manufactured excisable goods. 7. In the present case, we note that there is no evidence relating to procurement of extra unaccounted raw materials/inputs, deployment of additional labour, unaccounted transportation/sale, identity of any of the buyers of such goods, etc. Even where certain veri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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