TMI Blog2023 (8) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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. In the case of M/S UNION ENTERPRISES ANOTHER VERSUS UNION OF INDIA OTHERS [ 2014 (5) TMI 93 - CALCUTTA HIGH COURT] , the Hon ble Kolkata High Court has considered the Allahabad High Court s decision in the case of R. A. Casting on similar issue and held that mere excess consumption of electricity without any corroborative evidence relating to the purchase of the raw material, conversion of the raw material into a final products and clearance from the manufacturing unit to the respective buyers are produced does not raise pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of the goods. No corroborative evidence in the form of any purchase of raw material, clearance of goods, any cash transactions or any private records were recovered or relied upon by the Department for fastening the duty liability. He submits that in the absence of any corroborative evidence, mere citing of electricity consumption to arrive at the quantification of manufacture is erroneous and is based on assumptions and presumptions only. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Casting on similar issue and has noted as under:- 14 . The order of the Tribunal rendered in R.A. Casting was assailed before the Allahabad High Court while dismissing the proceeding it is held : 3. Being aggrieved by the impugned orders, the respondents filed appeals before the Customs, Excise Service Tax Appellate Tribunal, New Delhi. The Tribunal observed that it is settled principle of law that the electricity consumption cannot be the only factor or basis for determining the duty liability, that too on imaginary basis, especially when Rules 173E mandatorily requires the Commissioner to prescribe/fix norm for electricity consumption first and notify the same to the manufacturers and thereafter ascertain the reasons for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the raw material, conversion of the raw material into a final products and clearance from the manufacturing unit to the respective buyers are produced does not raise presumption of evading the duty. This has been a consistent view of the Tribunal based upon the said R.A. Casting (supra) in dispensing the pre-deposit condition unless the CESTAT at Delhi in M/s. Amrit Versha Ispat v. CCE, Meerut-I took a different view. The said order was assailed before the Delhi High Court in W.P (C) No. 8141 of 2008 by order dated 19th November, 2008. The Division Bench of the Delhi High Court set aside the order of the Tribunal and directed reconsideration in the light of the ratio laid down in R.A. Castings Pvt. Ltd. (supra). [Emphasis supplied] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd nothing beyond that to suspect that there is clandestine removal of the finished product by the noticee. Nonetheless, for exact proof of unaccounted manufacturing of finished products and for clandestine removal thereof, more labour was required to be done by the respondents . It has become fashion with the respondents-department to rely upon a document, since 2003 onwards, which is known as report given by Dr. N.K. Batra, so-called Professor of IIT, Kanpur. Petitioner is in possession of an e-mail communicated by IIT as to whether such report has ever been given by IIT, Kanpur, the answer given by IIT, Kanpur in negative (Annexure-4, 4/1 to the memo of this petition). (v) Several decisions have been given by the Tribunals which h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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