9911796707
TMI Blog2006 (11) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to T.K. Warna S.S.K. Ltd. duty involved is Rs. 59,07,924/- for the period 1-10-2001 to 31-12-2002 along with penalty of equivalent amount imposed by the Commissioner under the impugned order. 3. In the second stay application filed by applicant in appeal No. E/S/2694/06 the duty involved is Rs. 61,94,067/- for the period 1-10-1999 to 31-9-2002 along with penalty of equivalent amount arising out of the Commissioner's order. 4. The brief facts of the case are that the appellants are engaged in the manufacture of sugar falling under Chapter 17 of the Schedule to Central Excise Tariff Act, Sugar is classifiable under two sub-heading 1701.31 and 1701.39 which reads as under :- 1701.31 - Required by the Central Government to be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the levy sugar release order issued by the Directorate of Sugar in the first instance, even if the entire quantity/part quantity so released exceeds the levy entitlement of the factory. It was further stated in this order that non-compliance with the same would constitute an offence and shall be punishable under Essential Commodity Act. The applicant-companies were receiving release order issued under Levy Sugar Supply (Control) Order, 1979 from time to time and were complying with the same as per direction contained in the order. It so happen that that in each of the order in dispute the quantity of levy sugar supplied under these orders happen to exceed the total percentage of quantity required to be supplied as levy sugar under the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 3(2)(f) of the Essential Commodities Act. They are bound by this order and non-compliance will result in offence under Essential Commodities Act. It was further submitted that in any case over all percentages are maintained as excess sugar release in particular year is adjusted in the subsequent year and in support thereof they referred to the letter addressed by Commissioner of Sugar, Maharashtra State, to Commissioner of Central Excise, Pune vide Letter No. CE/Dev.II/Sugar Stock/Excise/127/2005 dated 29-3-2005. 8. It was further submitted that under Levy Sugar Supply (Control) Order, 1979 levy sugar has been defined as Levy sugar means the sugar requisitioned by the Central Government under Clause (f) sub-section (2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 as amended from time to time. Therefore, there is no ground for holding that the sugar in excess of the ratio was under the different order and not under the Essential Commodities Act. Even otherwise as Ministry has issued another order under Section 3(2)(f) of the Essential Commodities Act itself stating that the sugar producers have to comply with the release orders even if the entire quantity/part quantity so released exceeds the levy entitlement of the factory, all releases have to be considered under Section 3(2)(f) only and not otherwise. We therefore feel that the applicants have been able to make out a prima facie case in their favour so as to call for complete waiver of pre-deposit of duty and penalty and we accordingly waive the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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