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2019 (8) TMI 423 - AT - Central ExciseClandestine manufacture and removal - mild steel ingots - allegation based on consumption of electricity - period in dispute is from 2003-04 to 2007-08 and beyond - HELD THAT:- The derivation of the average power consumption for manufacture of ingots is based on the study conducted by Indian Institute of Technology, Kanpur which may not be applicable for the disputed period in the regime of Central Excise Rules, 2002. The technical report of Dr NK Batra, which has been relied upon, may have been relevant at the point when norms for consumption could be fixed under rule 173E of the erstwhile Central Excise Rules, 1944. The power consumption of the unit appears to have been computed on the basis of certain private production slips that were seized during the search proceedings. These, as pointed out by Learned Counsel, pertains to 2001 and 2002 whereas the demand stands confirmed for the subsequent period. We are unable to fathom the acceptability of reliance on the data, such as it is, pertaining to an earlier period. There is no evidence of any payments having been received from customers of the goods that were allegedly manufactured clandestinely and as the norms applied for computation of production are not applicable to the period of dispute, the consequence arising from shortage of raw materials of various types would not unerringly lead to confirmation of the allegations proposed in the show cause notice - The finding that evasion of duty did occur based on circumstances that are not established and other supplementary evidence is not maintainable. Appeal allowed - decided in favor of appellant.
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