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2024 (8) TMI 773 - AT - Central ExciseEntitlement for exemption of sugar cess under N/N. 42/2001-CE (NT) dated 26.06.2001 for export of sugar - case of the department is that the goods under N/N. 42/2001 CE (NT) can be cleared for export under bond without payment of excise duty - HELD THAT - The very same issue in the appellant s own case has been decided by this Tribunal in SHREE MAHUVA PRADESH SAHAKARI KHAND UDYOG MANDLI LTD VERSUS COMMISSIONER OF C.E. S.T. -SURAT 2024 (5) TMI 785 - CESTAT AHMEDABAD , wherein it was held that ' Applying the ratio of these judgments in the present case also, the Sugar Cess Act, 1982 is nothing but the duty of excise. Accordingly, the same treatment to the sugar cess as to the excise duty should be given. Hence, under the facts of the present case in view of the judgment in the case of export of goods by virtue of Notification No. 42/2001- CE (NT) the appellant is not liable to pay sugar cess. Moreover, as per Notification issued vide Circular No. 10/93 CX.08 dated 01.09.1993 in case of export of sugar, the sugar cess is exempted.' Thus, the demand of sugar cess raised as per the impugned order is not sustainable. Hence, the impugned orders are set-aside and the appeals are allowed.
Issues:
Whether the appellant is entitled to exemption of sugar cess under Notification No. 42/2001-CE (NT) for export of sugar. Analysis: The judgment revolves around the issue of whether the appellant is liable to pay sugar cess on export of sugar under Notification No. 42/2001-CE (NT). The department argued that sugar cess is not excise duty and thus should be paid even if goods are cleared for export under bond without excise duty. The appellant relied on a previous Tribunal decision in their favor. The Tribunal considered the provisions of the Sugar Cess Act, 1982, which mandates the levy and collection of sugar cess as excise duty on all sugar produced in India. The Tribunal held that even though sugar cess is levied under the Sugar Cess Act, it is considered excise duty for all purposes, and exemptions granted to excise duty apply mutatis mutandis to sugar cess. The Tribunal referred to a case involving diversion of sugar for home consumption and the imposition of central excise duty, sugar cess, and interest. The Tribunal highlighted that sugar cess is considered a duty of excise under the Sugar Cess Act and should be paid along with interest as per applicable rates. The Tribunal emphasized that the provisions of the Sugar Cess Act, 1982, and the Central Excise Act, 1944, apply to the levy and collection of sugar cess. The Tribunal held that interest on sugar cess diversion for home consumption is governed by the Central Excise Act and Rules, and the appellant was liable to pay interest as per the provisions. The Tribunal also discussed a circular exempting sugar cess on sugar exported out of India. Relying on previous judgments and the circular, the Tribunal concluded that the appellant was not liable to pay sugar cess for export of sugar under Notification No. 42/2001-CE (NT). The Tribunal set aside the demands raised in the impugned order, allowing the appeals with consequential relief. The judgment reiterated that the demand for sugar cess was unsustainable based on previous decisions and circular exemptions. Therefore, the impugned orders were set aside, and the appeals were allowed.
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