TMI Blog2018 (3) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... f the project report and the capacity of the machine installed in the factory, he has observed that the same are corroborative evidences to the main allegations, which are primarily based upon the entries made in the packaging register and the labour contract register. Inasmuch as in the present case, the Revenue has been able to establish the procurement of the excess raw materials, excess payments made to the labourers, the excess electricity consumption and the excess installed capacity, the cumulative effect of all these evidences would lead to the inevitable conclusion that the appellants have manufactured and cleared clandestinely their final product. Appeal dismissed - decided against appellant. - E/1185/2011-EX[SM] - A/71808/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant years for packing of the glasses at the rate of ₹ 16/- per gatta. The electricity bills resumed from the factory also revealed the excess consumption of electricity. The appellant's production capacity was also verified and it was noted that the same is much on the higher side. From the statements of the Directors and the Supervisors, capacity of machines, working hours of the unit, payment made to the labour contractors, rate of payment/box of P.P. Glasses made to the labour, project report submitted to the bank, variations in raw material record as against actual purchase, bank statements of the suppliers of the raw materials, actual production detected in private records and from comparison of the consumption of electric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the jurisdiction of the other commissionrates were got verified by the concerned jurisdictional officers to know the actual quantity of the raw material supplied by them alongwith their bank statements. Scrutiny of the same revealed that the appellant had purchased varying quantities of raw materials from the said raw material supplier, which had not been entered by them in any of their statutory records. Apart from above, Revenue also procured a project report submitted by the assessee before their banks for the purpose of availing loan. As per the said project report the unit was working 24 hours daily and 25 days in month. As per the said project report read with the electricity consumption figures, the final production in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f raw material and payments made to supplier, after follow up reports from the department. g) Details of payment made to contract labours for packing during 2008-09. 10) The Adjudicating Authority referred to the various statements of the Directors wherein the excess production was admitted by them. He also observed that though the variation in consumption of electricity cannot be held to be a sufficient ground for raising of demand but the same is strong corroborative evidence when seen in addition other evidences and confessional statements. As regards the appellant's plea of trading raw materials, he observed that apart from a bald statement to that effect, they have not shown any documentary evidence to that effect. Similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at inasmuch as the adjudication authority has taken note of the electricity consumption, such findings cannot be upheld. For the above proposition reliance is placed upon the Hon'ble Allahabad decision in the case of Commissioner of Central Excise, Meerut Vs. R.A. Castings Pvt. Ltd. : 2011 (269) ELT 337 (All.). However, I find that in the said case of RSA. Castings Pvt. Ltd., the Revenue's allegations were solely based upon electricity consumption. It was in that scenario, that the Court held that higher electricity consumption cannot be made basis for arriving at the excess production or steel ingots, In the present case, the Commissioner has himself observed that the reference to electricity consumption is only to corroborat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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