Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2017 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1703 - HC - Central ExciseRecovery of Excise duty - Whether the incentives granted to the appellant permit them to collect excise duty, more than they had themselves paid, from their customers, if they collected by way of excise duty more than what they had paid, then by virtue of Section 11D of Central Excise Act, 1944, were they bound to deposit that amount with the Government? HELD THAT:- While filing the monthly returns for the period September, 1991 to January, 1993, the assessee had collected central excise duty @ ₹ 85 per quintal on 84890 quintals of VP Sugar amounting to ₹ 72,15,650/- from the buyers but had deposited the Central Excise duty @ ₹ 52/- per quintal on the said quantity. It thus, becomes clear that the assessee had retained certain sums with them, which they had collected in excess. Therefore, a notice under Section 11D of the Central Excise Act, 1944 was issued for the recovery of the said amount. This very issue has been finally settled by Hon’ble Apex Court in KISAN SAHKARI CHINI MILLS LTD. VERSUS COLLECTOR OF CENTRAL EXCISE, ALLAHABAD [2005 (3) TMI 124 - SUPREME COURT] where the Hon’ble Apex Court has held that under the incentive scheme, exemption of excise duty at the concessional rate has been granted to the assessee, but the Government order does not permit the assessee to collect more than what they have to pay to the Government under the scheme. If the assessee has collected excess excise duty, then it is bound to deposit such excess amount with the Government in view of the provisions of Section 11D of the Central Excise Act. The questions of law are, therefore, answered in favour of the department and against the assessee.
|