Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2008 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (9) TMI 365 - AT - Central ExciseSugar mill – demand - Appellants are a public-sector undertaking of the Govt. of U.P. having a number of sugar mills. The sugar by both the units of the Appellant’s sugar mill, was sold to the Govt. as levy sugar on loan basis out of free sale sugar quota and at that time, Central Excise Duty was paid under Heading 1701.31 by treating the same as levy sugar. - Since on conversion of sugar purchased from the sugar mills as ‘levy sugar on loan basis’ into purchase of sugar out of free sale quota and payment of the differential amount to the sugar mills, the sugar cleared by the sugar factories of the Appellant Company became free sale sugar, classifiable under heading 1701.39, duty was payable on the same at the rate applicable to the free sale sugar. – Demand of differential duty not sustainable - allegation of mis-statement, or suppression of fact with intent to evade the payment of duty does not make any sense, more so when the duty paid was to be reimbursed to them by the Govt – penalty and interest not justified
|