9911796707
TMI Blog2019 (8) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... nd after hearing the learned A.R. appearing for the Revenue. 2. As per facts on record, the appellant is engaged in the manufacture of sugar and molasses in their factory situated at DSM Sugar Compound, Kashipur. A part of the factory has been leased out by them to M/s S.G. Steel, who are engaged in the manufacture of ingots. The appellants also have a power generation plant in their factory, which is mostly operated during the crushing period i.e. from November to April. The excess electricity generated by them was being diverted to M/s S.G. Steel for their use in the manufacture of ingots. 3. M/s S.G. Steel addressed a letter to their jurisdictional Central Excise Authorities indicating that their capacity stands enhanced by 50% and as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant paragraph from the impugned order is reproduced below:- "It is observed that M/s DSM Sugar, Kashipur were unable to spare electricity for M/s S.G. Steels thus M/s DSM knew fully well about their capability of generating power and the quantum of power available for supply to the ingots manufacturing plant. The ingot manufacturing plant i.e. M/s S.G. Steels was wholly dependent upon the power to be supplied by M/s DSM Sugar Kashipur and that the inadequacy of power with M/s DSM Sugar, Kashipur in the face of having installed another furnace is indicative of connivance of M/s DSM Sugar Kashipur with M/s S.G. Steels to fraudulently avail the benefit of the exemption under Notification No.50/03-CE dated 10.06.03, M/s DSM Sugar, Kashipur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to understand as to how the generation of less electricity by the appellant reflecting upon their inability to provide the excess electricity to M/s S.G. Steel would invite penal action against them. The manufacturer of the ingots is M/s S.G. Steel and the claim of the exemption Notification also stands made by them. Merely because the appellant has not been able to provide electricity to M/s S.G. Steel so as to manufacture the ingots, will not call for imposition of any penalty upon the appellant. I find no reasons to sustain the present impugned order passed by Commissioner (Appeals) upholding the penalty upon the appellant. The same is accordingly set aside and appeal is allowed with consequential relief to the appellant. (Order prono ..... X X X X Extracts X X X X X X X X Extracts X X X X
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