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2012 (3) TMI 408 - AT - CustomsClandestine removal - Electricity consumption - The requirement in case of manufacture of ingots by melting of sponge iron ranges between 815 to 1046 KWH. But for the assessee, power consumption for the manufacture of per MT of ingots was ranging between 1159.72 to 2019.37 units in the year 2005-2006 - Revenue was of the view that respondents had not accounted for the entire production that could be manufactured from the electricity consumed by them and cleared the same clandestinely without payment of duty - Held that: - the issue is squarely covered by the Tribunal's decision in the case of R.A. Castings Pvt. Ltd. [2010 (9) TMI 669 - ALLAHABAD HIGH COURT] which stand confirmed by the Hon'ble High Court of Allahabad as also by the Hon'ble Supreme Court - it was held in the case that It is settled principle of law that the electricity consumption can not be the only factor or basis for determining the duty liability, that too on imaginary basis, especially when Rules 173E mandatorily requires the Commissioner to prescribe/fix norm for electricity consumption first and notify the same to the manufacturers and thereafter ascertain the reasons for deviations, if any, taking also into account the consumption of various inputs, requirements of labour, material, power supply and the conditions for running the plant together with the attendant facts and circumstances. Appeal rejected - demand set aside - decided against Revenue.
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