9911796707
TMI Blog2017 (9) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... ector of main appellant. The main appellants are engaged in the manufacture of M.S. rolled products like bars, angles, flats falling under Tariff Heading 7214 of Central Excise Tariff, liable to duty. The raw material for the manufacture of these items are M.S. Ingots. The central excise officers conducted certain verifications in October, 2005 in the premises of M/s. Nirmal Inductomelt Pvt. Ltd., who was one of the suppliers of ingots to the main appellant. The record recovered from M/s. Nirmal showed that 54.56 MT of MS Ingots were sold to main appellant, during the period 2.8.2005 to 3.10.2005. The record maintained by the main appellant had shown receipt of only 18.07 M.T. during the said period. The remaining 36.49 MT of MS ingots was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged unaccounted use of 36.49 MTs of M.S. Ingots) is on the basis of estimated average consumption of electricity for manufacture of one M.T. of M.S. items. Here also, the Revenue adopted the electricity calculation of another unit viz. M/s. Shree Sharma Steel Rolling Mills Pvt. Ltd., Jaipur. Even the basis of arriving at such average, electricity consumption is neither scientific nor technical proven. The Original Authority did not examine the basic fact that consumption of electricity widely varies from unit to unit, based on various criteria like age of the machine, capacity and quality of raw material and variety of final products manufactured. Ld. Counsel submitted that the Revenue registered cases against various manufacturer, simi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t explained satisfactorily, by the appellant. Power is one of the main resource in the manufacturing activity of M.S. Items and is a good indicator of quantum of production. He supported the findings of the Original Authority. 6. We have heard both the sides and perused the appeal records. 7. In the present case, duty demand is confirmed on two main basis. The first one is on the basis of a small quantity of 36.49 MTs of M.S. ingots shown to have been cleared by M/s. Nirmal Inductomelt Pvt. Ltd. to the main appellant and not shown in the accounts of the main appellant. The second reason, which is the main basis of confirmation of demands is estimated production by the main appellant based on average power consumption, as arrived at in ano ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shiv Prasad Mills Pvt. Ltd., Jaipur. In the said case also, the demand arose based on the common investigation. The Original Authority held as below:- The Revenue contested the above findings by filing appeal before the Tribunal. The Tribunal vide Final Order dated 10.04.2015 upheld the above findings. The observation of the Tribunal, which is relevant to the facts of the present case is as below:- "Coming to the first piece of evidence - the private ledger book of M/s. NIPL which contain the details relating to supply of MS Ingots to the respondent unit during the period August, 05 to October, 05, it is seen that other than the entries in the private ledger book of M/s. NIPL and the statement of the concerned person of NIPL, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis. The department has made its case on the basis that the respondent by showing inflated power consumption of 231.59 units per MT while their actual power consumption should be 102.09 units per MT have under reported their production of rolled products. This power consumption ratio has been adopted from M/s. SSSRM and the same has been applied in the case of respondents unit without conducting any experiment. There is absolutely no justification for adopting power consumption norm of M/s.SSSRM to the unit of the respondent as while the rolling mills of M/s.SSSRM is automatic rolling mills, the respondents rolling mill is manual. Moreover, no experiment has been conducted by the department to ascertain as to whether the rolling mills of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of duty evasion, in case his actual production drastically varied from the normal production. But in this case, no experiment has been conducted by the department, in respect of the respondents unit to determine their actual power consumption. Before adopting power consumption ratio of M/s. SSSRM and applying it to the respondent's unit absolutely no study has been conducted to establish as to whether the rolling mill of the respondent is comparable with the rolling mill of M/s.SSSRM." 9. We also note that in another bunch of appeals arising out of common investigation, the Tribunal vide final order dated 19.03.2015 in the case of M/s. R.M. Brother Pvt. Ltd. and others held that merely on the basis of power consumption of the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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