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CCE Pune II Versus Daulat SSK Ltd., Shri Chhatrapati Rajaram SSK Ltd., Shri Dudhganga Vedganga SSK Ltd. & Kumbhi Kasari SSK Ltd.

2015 (11) TMI 364 - CESTAT MUMBAI

Classification of goods - Classification under CSH 1701.31 or 1701.39 - Clearance of sugar as levy sugar - Held that:- Clearance of free sale sugar by the respondent sugar factories are as per the direction and order of the State or the Central Government, which is covered under the tariff heading number 1701.31 and the Central Excise duty is payable as per the tariff entry. This conclusion of ours is after considering the order issued by the competent authority, in exercise of the powers delega .....

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hem. - 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. Mathew, Member (Technical) For the petitioner : Shri Ajay Kumar, Jt. Commr (AR) For the Respondent : Shri V.B. Gaikwad, Advocate ORDER Per: M.V. Ravindran All these appeals are disposed of by a common order as the is .....

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ons of Essential Commodities Act and the Levy Sugar Supply (Control) Order, 1979 as to the clearances of sugar manufactured in their factories. The respondent assessees are required to clear a particular percentage of sugar as levy sugar which is classified under CSH 1701.31 or 1701.39 and are discharging the specific rate of duty as per tariff. Respondent assessees are also permitted to clear a particular percentage of sugar as free sale sugar on which the Central Excise duty is more. By an ord .....

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late 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 equivalen .....

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ernment or the Central Government, hence the respondent assessee should not be put to a disadvantage by holding that they are liable to pay Central Excise duty at higher rate. 7. On consideration of the submissions made by both sides, we find that the impugned orders are correct and legal and no interference is called for more than one reason. 7.1. Firstly, the clearance of free sale sugar by the respondent sugar factories are as per the direction and order of the State or the Central Government .....

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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 h .....

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n excess of levy entitlement of the appellant is classifiable under CSH 1701.39 attracting Central Excise duty @ ₹ 85/- per quintal; that the excess quantity of sugar was out of the free sale quota, and only such percentage of production .of sugar required and ordered by Central Govt. can be classified as "Levy sugar" under CSH 170'1.31 which has been ordered under Section 3(2)(f) of the Essential Commodities Act, 1955 and the remaining even if cleared to State Govt. merits c .....

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ral Govt. may by order direct any producer or importer or recognized dealer to supply levy sugar to such persons or organizations, State Govt/Union Territory as may be specified in the order. As per Explanation to Clause 2(1) of The Levy Sugar 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 .....

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1979, even in excess of the levy entitlement of the producer has to be treated as supplied under Section 3(2}(f) of Essential Commodities Act, 1955 only. Therefore, in the present case, as the excess supply of levy sugar has been made under clause 2( 1) of the Levy Sugar Supply (Control) Order, 1979, the same falls under the category of supply requisitioned by Central Government under Section 3(2)(f) of Essential Commodities Act, 1955. The clearance of said levy sugar in this case,; therefore, f .....

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the levy sugar release order issued by the Directorate in the first instance, even if the entire quantity/part quantity, so released exceeds the levy entitlement of the factory and non compliance of the order was punishable under Essential Commodities Act, 1955. Therefore, the department's case that excess clearances cannot be treated as clearance under Section 3(2)(f) of Essential Commodities Act, 1955 is not tenable. Therefore, there is no merit in the stand of the department. 7.2 The abo .....

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