TMI Blog2015 (11) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... es Act. It is nobody s case that the said Act is not Central act. The tariff heading 1701.31 is applicable in the cases in hand. We find that the first appellate authority has correctly set out the reasonings for setting aside the orders in original. - issue is covered by the judgement and order of the Tribunal in the case of Perambulur Sugar Mills (2009 (11) TMI 767 - CESTAT CHENNAI) - impugned orders are correct and legal and there is no infirmity in them. - Decided in favour of assessee. - Appeal No. : E/2611/05, E/2612/05, E/2613/05, E/2614/05, E/2615/05, E/2616/05, E/2667/05, E/2725/05 & E/CO/46/06 And E/2820/05 - Final Order Nos. A/3608-3617/2015-WZB/EB - Dated:- 21-10-2015 - Mr. M.V. Ravindran, Member (Judicial) And Mr. C.J. Mathe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sugar cleared in excess as Levy sugar of the allotted Levy sugar, the duty liability has to be discharged as a free sale sugar. The adjudicating authority confirmed the demands raised along with interest and also imposed penalties. The first appellate authority set aside the impugned orders. 5. Learned departmental representative would draw our attention to the provisions of Essential Commodities Act 1955 as also to the order issued under the Levy Sugar Supply (Control) Order 1979 and submit that an order issued under Section 3 of the Essential Commodities Act cannot be considered for the clearances at a lower rate of Central Excise duty. He would further submit that the release order issued under Levy sugar supply order is not equivale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onings for setting aside the orders in original. We reproduce the findings which are recorded at paragraph number 4. 4. I have carefully gone through the case records and the various submissions made by the appellants. The issue to be decided is whether the excess quantity of sugar which was requisitioned by the Central Government under the Levy Sugar Supply (Control) Order, 1979 is classifiable under CSH No. 1701.31 or 1701.39 of the Central Excise Tariff Act 1985. I find that the Adjudicating Authority has held that Release Orders were issued under The Levy Sugar Supply (Control) Order, 1979, whereas tariff entry of CSH NO.1701.31 pertains to sugar required by Govt. to be sold under Section 3(2)(f) . of Essential Commodities Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supply (Control) Order, 1979, 'levy sugar' means the sugar requisitioned by the Central Government under Section 3(2)(f) of the Essential Commodities Act, 1955. This therefore, clearly shows that levy sugar issued for release under clause (2)(1) of the Levy Sugar Supply (Control) Order, 1979 means. the levy sugar requisitioned by the Central Govt. under Section 3(2)(f) of the Essential Commodities Act, 1955. Therefore, when the order is made by the Central Govt. under clause 2(1) of the Sugar Supply (Control) Order, 19('9 for supply of levy sugar then the levy sugar so supplied is levy sugar under Section 3(2)(f) of Essential Commodities Act, 1955. Therefore, any clearances made under Clause 2(1) of Levy Sugar Supply (Control) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.2 The above reproduced reasoning of the first appellate authority is acceptable and we do not find any merits in the grounds raised by the Revenue in appeals. 7.3 Secondly, we find that the issue is now covered by the judgement and order of the Tribunal in the case of Perambulur Sugar Mills (supra). With respect, we reproduce the entire judgement. Heard both sides. During the period in dispute, the appellant-sugar mill was directed by the Director (Sugar Control), Ministry of Food and Consumer Affairs to divert impugned quantity of sugar from free sale quota and sell the same as levy sugar purely on loan basis. Subsequently, the appellants were compensated by diversion of equal quantity from the levy sugar quota to free sale sugar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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