TMI Blog2004 (7) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... levy sugar is less than the free sale sugar; that the levy sugar is cleared as per the allotment by the Directorate of Sugar; that as per the Order dated 28-10-98 of the Directorate of Sugar a quantity of 6,393 quintal of sugar was to be cleared as levy sale sugar out of free sale sugar entitlement for the month of November, 1998 from the production year, 1997-98; that accordingly they cleared 6,393 quintal of sugar in November, 1998 on payment of Central Excise duty @ applicable to free sale sugar because as per order of the Government of India it was purchase of sugar from free sale by the Government of India and the duty was to be reimbursed by the Government of India; that however, later on it was ordered to be treated as on loan basis; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course for the Appellants was to file a refund claim; that the adjustment now made by the Appellants by way of paying duty at the rate applicable to levy sugar though the sugar was cleared as free sugar does not affect the Government because the sugar was cleared on the direction of one Ministry of Government of India and duty amount has gone in the other Ministry of the Government of India; that on such technical grounds the Appellants should not suffer and Government should not keep the money with it. He finally mentioned that no penalty is imposable on the Appellants particularly when the Additional Commissioner has specifically given a finding that there was no intention to evade payment of duty. 4. Countering the arguments Shri U. Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vember, 1998, perhaps on the basis of letter dated 13-10-98 of the Department of Sugar and Edible Oil wherein it was mentioned that the differential Excise duty would be reimbursed to the sugar factories by the Government of India. This was an arrangement between the sugar factories and the Department of Sugar Edible Oils. If subsequently there is any change in the terms and conditions, classification of the sugar for the purpose of levying Central Excise duty cannot be changed. We are strengthened in our view by the decision of the Supreme Court in the case of M.R.F. Ltd. v. CCE, Madras - 1997 (92) E.L.T. 309 (S.C.). In this matter the issue involved relates to the refund of duty on the difference between the price on the date of removal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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