1982 (2) TMI 186 - AT - Central Excise

Summary

Issues:
1. Revision petition against the order passed by the Appellate Collector.
2. Clarification on levy sugar and free sale sugar.
3. Demand for differential duty on sugar.
4. Rejection of refund claims by the Assistant Collector.
5. Appeal before the Appellate Tribunal.
6. Decision on the duty basis for the cleared sugar.
7. Company's apprehension regarding refund of excise duty.
8. Resolution of the appeal and refund of excess excise duty.

Analysis:
The case involved a revision petition filed by a company against an order passed by the Appellate Collector regarding the duty liability on sugar cleared from the factory. The dispute revolved around the distinction between levy sugar and free sale sugar. The company had initially cleared 300 quintals of sugar as levy sugar but due to changes in regulations, the sugar could not reach its destination, leading to demands for differential duty by the Excise authorities. The Assistant Collector rejected the company's refund claims, leading to appeals being filed and subsequently dismissed.

The Appellate Tribunal considered the company's contentions and the Board's order, which clarified that the sugar had been validly cleared as levy sugar on a specific date, making the demands for differential duty legally untenable. The Tribunal set aside the lower authorities' orders and allowed the appeal, directing the refund of excess duty paid by the company. The company's representative argued vehemently, emphasizing the misunderstanding of the case by the Appellate Collector, while the Departmental Representative contended that the appeal should have been withdrawn in light of the Board's order.

The Tribunal, based on the Board's clear order, dismissed the company's apprehensions regarding the refund of excise duty, stating that any excess duty collected should be refunded promptly. Considering the peculiar circumstances of the case, the Tribunal declared the present appeal as infructuous and directed the refund of excess excise duty based on the Board's decision. Ultimately, the Tribunal resolved the issue by upholding the company's position and ensuring the refund of any excess excise duty collected on incorrect grounds.