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TMI Blog1997 (12) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... nated export agency, the quantities of export quota fixed against each under the provisions of the Sugar Export Promotion Act. There is no dispute that during the period from 1990-93 the respondents in Appeal No. E/675/96 delivered only part of the quantity of the Export Quota quantity and the respondents in other 2 appeals did not deliver any part of the export quota quantity to the export agency. Under Section 7 of the Act, where sugar delivered by any owner falls short of the export quota fixed for it by the Govt. there shall be levied and collected on so much of sugar cleared by the factory for home consumption, a duty of Excise at the rate prescribed in addition to the duty of Central Excise. In view of the shortfall in delivery in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India in the season ending in the month of October of the year. 5. Section 5 enables the Central Govt. to apportion the aforesaid quantity among owners of factories in proportion to the quantity of sugar produced or likely to be produced by them during the season and communicate the order to each of the factories. The quantity so apportioned shall be deemed to be the export quota for each factory. 6. Section 6 casts on the owner of every factory on demand by the export agency the liability to deliver the sugar produced in the factory in quantity not exceeding the export quota fixed within such time and such place as has been specified by the agency and when sugar is so delivered the owner has no right therein except the right to rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondents to the agency. It is also contended that Central Excise duty was paid in all these cases. It is explained that the export agency followed this course for one or other reasons mentioned in the proviso to Section 8(1) of the Act. It is further contended that it was only in this light that the export agency issued the certificate to each of the respondents stating that they had fulfilled the export obligation during the relevant period. 10. The Commissioner of Central Excise acted on the certificate issued by the export agency and held that the export obligation had been fulfilled under Section 7(1) of the Act. This reasoning has been challenged by the department. 11. We have adverted to the provisions and broad scheme of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of any quantity in these cases and instead of delivery followed by sale by the agency, the respondents were required to sell sugar in India and instead of handing over the sale proceeds to the agency the respondents made good the loss which the agency suffered by purchasing quality sugar from other factories at higher prices for the purpose of export. According to the ld. Counsel this would fall squarely within the purview of sub-section (2) of Section 8 of the Act. 12. In the absence of relevant documents produced before the Commissioner, we do not think that he could have been satisfied that export obligation has been fulfilled merely on the basis of the certificate issued by the agency. The certificate issued by the agency cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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