TMI Blog2013 (12) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment - the appellants are collective more duty from customers and are paying less with the Central Government. Suppression with intent to evade payment of duty – Held that:- The appellant filed classification list whereby the appellant claimed concessional rate of duty as per the Incentive Scheme - the corresponding sale bills show collection of higher duty form the customers - it cannot be said that the allegation of suppression with intent to evade payment of duty is not sustainable - the incentive granted to the sugar manufacturers did not permit them to collect more than what they had themselves paid from their customers - If they collected by way of excise duty more than what is dues, then by virtue of Section11D of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 11D of the Central Excise Act. 5. The appellant also submitted that the allegation of suppression with intent to evade payment of duty is not sustainable as the appellant in the classification list and the excise documents under which the goods were cleared specifically mentioned that the appellants were working under the Incentive Scheme for new sugar factories issued on 4.11.1987 by the Government of India, Ministry of Food and Civil Supplies of the Directorate of Sugar. The Incentive Scheme provides in addition to higher freesale quota mentioned in the scheme, new factories and expansion projects which become entitled to incentive scheme under the 1987 Scheme will be allowed to pay excise duty as applicable for levy sugar and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not permit them to collect more duty than what is payable to the Revenue department. 8. The Revenue also contended that the present proceedings were initiated by issuing Show Cause Notice after introduction of Section 11D of the Central Excise Act. 9. In respect of suppression, the contention of the Revenue is that the appellants were paying duty @ Rs. 38/- per quintal whereas Commercial Invoices issued to the customers indicating Central Excise duty at Rs 71/- per quintal. This fact came to light only during the scrutiny of the sale bills that the appellants were collecting more duty than what is payable to the Revenue. It is a clear case of suppression of fact with intent to evade payment of duty. Hence the demand is rightly made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h intent to evade payment of duty, we find that the appellant filed classification list whereby the appellant claimed concessional rate of duty as per the Incentive Scheme under Notification issued by the Ministry of Finance, Department of Revenue. However, the corresponding sale bills show collection of higher duty form the customers. This fact has come to the notice only during the scrutiny of the documents with the declaration made in the classification list. Therefore, it cannot be said that the allegation of suppression with intent to evade payment of duty is not sustainable. The Hon'ble Supreme Court in the case of Kisan Sahkari Chini Mills Ltd. supra that the incentive granted to the sugar manufacturers did not permit them to collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of the (2) Central Government under sub-section (1) shall be adjusted against he duty of excise payable by the person on finalisation of assessment and where any surplus is left after such adjustment the amount of such surplus shall either be credited to the Fund or as the case may be refunded to the person who has borne the incidence of such amount in accordance with the provisions of Section 11B and the relevant date for making and application under that Section in such cases shall be the date of the public notice to be issued by the (Assistant Commissioner of Central Excise) 6. It appears that after this Section was introduced the Appellants have been asked to deposit amounts collected by them from their customers and the adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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