2006 (4) TMI 431 - AT - Central Excise

Summary

Issues:
Appeal against Commissioner's order, interpretation of provisions of Sugar Export Promotion Act, 1958, obligation of sugar manufacturer to supply export quota, discrepancy in quantity of sugar exported, levy of additional excise duty.

Analysis:
The case involves an appeal by the department against the Commissioner's order following a review by the Board. Despite notice, there was no representation from the respondents or any request for adjournment. The appeal pertains to the provisions of the Sugar Export Promotion Act, 1958, which mandated sugar manufacturers to supply their export quota to the appointed agency. In this case, the Exporting Corporation was appointed as the Export Agency by the Government. The department alleged that the manufacturer exceeded the export quota for a specific period, but claimed to have evidence showing a lesser quantity delivered based on a certificate from the Exporting Corporation.

Upon examination, it was found that as per Section 6(1) of the Act, sugar manufacturers were required to deliver sugar to the Export Agency not exceeding the fixed export quota. The Export Agency's Certificate indicated that the manufacturer had indeed delivered the requisitioned quantity of sugar, which was duly exported during the relevant period. The department's appeal suggested a discrepancy in the exported quantity compared to the export quota. However, Section 7(1) of the Act stipulated the levy of additional excise duty only when the delivered sugar fell short of the export quota. Since the manufacturer had exported a larger quantity than the fixed export quota, the provision of levying additional excise duty was deemed inapplicable.

Therefore, it was concluded that the department's demand for additional excise duty on the exported sugar from M/s. Siruguppa Sugars & Chemicals Ltd. was not justified. Consequently, the Commissioner's order was upheld, and the Revenue's appeal was dismissed.