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2015 (8) TMI 389 - CESTAT NEW DELHI

2015 (8) TMI 389 - CESTAT NEW DELHI - TMI - Clandestine removal of goods - Non accounting of goods in RG-1 register - Held that:- Quantity alleged to have cleared during a particular month based on certain seized documents may not have been manufactured during that month and therefore for the purpose determining power consumption for production of one MT TMT bar/MS bar, this quantity cannot be treated as the quantity produced during that month. Moreover, neither any experiment has been conducted .....

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demand of ₹ 1,40,93,563/- appears to be sustainable, the balance duty demand ₹ 9,89,44,328/- does not appear to be sustainable. Accordingly, we hold that the amount of ₹ 1,40,93,563/- already paid by the appellant is sufficient for hearing of these appeals. Hence the requirement of pre-deposit of balance amount of duty, interest and penalty by the appellant company and the requirement of pre-deposit of penalty by the other appellants is waived for hearing of their appeals and r .....

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nt was visited by the jurisdictional Central Excise Officers on 21.09.2011. Simultaneously the search was conducted in the factory premises of the appellant company, residence of Shri Rakesh Bhatnagar, General Manager of the appellant company, residence of Shri Karan Pal Singh, Chairman of the appellant company, guest house of the appellant company and residence of Shri Chirag Sharma, executive assistant to chairman of the appellant company. In the course of stock taking of finished goods, there .....

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ocuments regarding clearances during April, May and June, 2011 were recovered and on the basis of value of clandestine removal of the goods, the total duty involved was ₹ 1,10,25,351/-. Similarly, from the factory premises certain documents were recovered which indicated clandestine removal during the month of March, 11, the total duty involved in respect of which is ₹ 10,49,669/-. The total duty involved on the quantity of finished goods found short, and duty involved in respect of .....

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be production of those months, determined the production of those months after taking into the production recorded in the RG-1 register and on this basis determined average power consumption for production of per MT MS bar/TMT bar. Accordingly, they determined that in the factory of the appellant for production of one MT MS bar/TMT bar power consumption of 669.838 unit was required. By applying this norm to the total power consumption during the period from 1.4.2007 to 13.12.2012, the officers .....

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1,36,37,891/- against the appellant alongwith interest and besides this while imposed penalty of equal amount on the appellant company under section 11AC and imposed penalty under Rule 26 of Central Excise Rules, 1944 on the other co-noticees. Against this order of the Commissioner, these appeals have been filed alongwith stay applications. 2. Heard both sides in respect of stay applications. 3. Shri Bipin Garg, Advocate, the learned Counsel for the appellant pleaded that out of total duty deman .....

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6,849/- is based on the computer print outs which according to the department contained the details of the clearance made during the August, 2011, that the duty demand based on the shortage of finished goods and the total duty demand based on the computer printouts and the documents recovered from the factory premises and the guest house worked out to ₹ 1,40,93,563/- which had already been paid by the appellant company during investigation and remaining duty demand of ₹ 9,84,44,328/- .....

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orrect, that production may be of the previous months, that no experiment has been conducted by the department to ascertain power consumption required for production one MT of TMT bar/MS bar starting of the stage of scrap, that except for this ratio of power consumption of 669.83 units per MT TMT bar/MS bar, there is no evidence of purchase of unaccounted raw material or evidence of clandestine removal in respect of duty evasion of ₹ 9,89,44,328/-, that in view of this, the duty demand of .....

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and penalty by the appellant company and the requirement of pre-deposit of penalty by the other appellants may be waived for hearing of their appeals and recovery thereof may be stayed till disposal of the appeals. 4. Shri Yashpal Sharma, ld.DR opposed the stay applications by reiterating the findings of the Commissioner in the impugned order. 5. We have considered the submissions from both sides and perused the records. 6. The Commissioner has observed in para 52 of the impugned order, the cen .....

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by dividing the total power consumption during the period of dispute from 1.4.2007 to 13.12.12 by 669.835. According to the department, for production of one MT TMT bar/MS bar 669.835 units of electricity is required. This ratio has been determined by dividing the total power consumption during the period from March to June, 11 and August, 11 by actual production of bars during this period and the actual production of bars has been determined by adding production of these months as recorded in t .....

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