2006 (11) TMI 506

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..... t]. The respondents herein are engaged in the manufacture of sugar falling under Chapter 17 of the schedule to the Central Excise Tariff Act, 1985. In the year 1997-98, the Ministry of Food Consumer Affair, Department of Sugar and Edible Oils, introduced an incentive scheme for new sugar factories and expansion projects, under letter dated 13-10-1998 of the Director (Sugar), Government of .....

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..... oposing recovery of the duty collected in the garb of incentive charges and retained by the assessees under Section 11A/11D of the Central Excise Act, and proposing levy of interest for delayed payment and imposition of penalty. The Joint Commissioner of Central Excise confirmed the demand under Section 11D, according to which every person who has collected any amount from a buyer of any goods in .....

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..... ed to the sugar factories by the Government of India. Therefore, the amount of Rs. 33/- per quintal clearly represents differential duty of excise. Further, the effective rate of duty on free sale sugar is Rs. 85/- per quintal and not Rs. 52/- per quintal as held by the lower appellate authority. In this view of the matter, the respondents are required to pay to the credit of the Central Governme .....

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