TMI Blog2023 (7) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... in the months where the production is shown as Nil - The Audit has failed to take note that the stock can always be sold in the next month. Further, the entire consumption of Electricity unit will not directly result in the finished products. The product will be at several stages as initial product, semi finished product, finished product etc. All these facts have been ignored in their over enthusiasm by Audit to fasten the case on the Appellant. From the Recorded statements, it is seen that the Authorized Signatory has stated the facts and is not any form of any confessional recording about any clandestine manufacture or clearances. After going through these factual details it emerges that the only base on which the demand has been con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Range/Division took up the investigation and recorded the statements of the Authorized Signatory of the Unit and obtained copies of ER-1 Returns and Electricity Bills. After this, a Show Cause Notice was issued demanding Excise duty of Rs.5,70,431/-. After due process, the lower Authorities confirmed the demand. Being aggrieved, the Appellant is before the Tribunal. 2. The Learned Advocate appearing on behalf of the Appellant submits that the Appellant has submitted all the details to the audit team and the Range/Division officials including the copies of their ER-1 Returns and the Electricity Bills. He draws attention to the statement recorded by Shri Rajesh Kumar Singh, Authorized Signatory. This person, on 03/06/2015 has stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atements from the Authorized Signatory. In the Statements, there is no mention or confession about any excess quantity being manufactured or cleared without payment of Duty. The Department has clearly failed to prove that any clandestine clearance has happened. No corroborative evidence has been brought in towards purchase, manufacture and alleged clearance of about 25,000 Kgs of Copper Wire in the course of these eight months. He relies on the following case laws:- (i) Union Enterprises Vs Union of India-2014 (306) E.L.T. 216 (Cal.) (ii) Sukh Sagar Metals (P) Ltd. Vs. Union of India-2020 (372)E.L.T. 801 (Jhar.) 4. Accordingly he prays that the Appeal may be allowed. 5. The Learned AR reiterates the findings of the lower authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct will be at several stages as initial product, semi finished product, finished product etc. All these facts have been ignored in their over enthusiasm by Audit to fasten the case on the Appellant. From the Recorded statements, it is seen that the Authorized Signatory has stated the facts and is not any form of any confessional recording about any clandestine manufacture or clearances. He has explained the way of Electricity Bills are generated and the same are consumed in the factory. 8. After going through these factual details it emerges that the only base on which the demand has been confirmed, is on account of the electricity consumption without any corroborative evidence whatsoever in any form. 9. In the case of Union Enterpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d uniformly acceptable standard of electricity consumption can be adopted for determining the excise duty liability that too on the basis of imaginary production assumed by the Revenue with no other supporting record, evidence or document to justify its allegations. The Tribunal has also considered the report of Dr. Batra, which has been relied upon for making the allegations that there was higher electricity consumption. It appears that Dr. Batra in his report has observed that for the production of 1 MT of steel ingots, 1046 units electricity required. [Emphasis supplied] 15 . The Apex Court declined to interfere with the said order as the special writ petition challenging the order of the Allahabad High Court was dismissed [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumption, high cost of production vis- -vis income from sale, unrealistically low amount of expenditure towards salary of employees and though manufacturing activity incurs losses, still the petitioner unit continues and profit is shown in the books of account from non-core activities by manipulating books of account. On this ground, the show cause notice has been given by the Commissioner, Central Excise and Service Tax, Jamshedpur . (iii) Counsel appearing for the petitioner has relied upon several decisions, as stated hereinabove. It ought to be kept in mind by the respondents that the electricity consumption pattern can be a corroborative ground and not a substantive ground at all. Thousands of possibilities cannot be equated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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