TMI Blog2015 (2) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee received the element of differential excise duty, that amount, in any case, would become payable to the Central Government. There is no dispute that the appellant have already paid this amount on 20th August 2002. Therefore, so far as the duty demand is concerned, the impugned order has to be upheld. However, as regards the interest under Section 11AB and penalty under Rule 173Q (1), the interest under Section 11AB during that period would be attracted only when any short payment of duty occurred due to fraud, wilful mis-statement or deliberate violation of provisions of Central Excise Act, 1944 or of the Rules made thereunder, but these elements are not present in this case. Therefore, interest liability under Section 11AB wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and before this, the National Federation of Cooperative Sugar Mills as well as Indian Sugar Association had been notified about this decision of the Government. There is no dispute that the differential duty, that is the duty payable at the rate applicable for levy sugar and at the rate free sugar, that is, ₹ 2,24,697/- had been paid by the appellant on 20th August 2002. The Jurisdictional Assistant Commissioner, however, vide order-in-original dated 27/12/04 confirmed the duty demand of ₹ 2,24,697/- against the appellant under Section 11A (2) of the Central Excise Act, 1944 and appropriated the same amount already paid by the appellant towards this demand. In this order, however, beside the duty, he also demanded interest on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1997, the appellant in terms of the directions of the Central Government had cleared certain quantity sugar from their free sale sugar quota as levy sugar on payment of duty applicable to levy sugar. Subsequently, the Central Government decided to restored to the sugar mills, the quantity of free sale sugar cleared as levy sugar and, accordingly, the appellant were paid the differential amount between the price of the levy sugar and the price of the free sale sugar alongwith the differential excise duty. Once the assessee received the element of differential excise duty, that amount, in any case, would become payable to the Central Government. There is no dispute that the appellant have already paid this amount on 20th August 2002. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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