9911796707
TMI Blog2012 (10) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... rer of sugar. During the period from October, 1997 to December, 1997, the said assessee had cleared 7182 quintals of sugar on loan basis to M/s. Food Corporation of India (FCI) in terms of order of the Ministry of Food & Civil Supply of the Government of India dated 27-10-1997 and discharged duty liability at the rate applicable to levy sugar. Later on, the Government of India vide order dated 29-11-1999 decided to treat the entire loan quantity of sugar as free sale sugar and reimbursed the price difference to the respondent assessee at the rate applicable for free sale sugar and the respondents were also directed to pay excise duty on the quantity of sugar involved at the rate applicable for free sale sugar. The differential duty liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue had upheld the demand as per the impugned order which has been confirmed by invoking the extended period of time and alleging suppression of facts on the part of the respondent assessee. Inasmuch as the demand has been upheld the appellate authority could not have set aside the demand for interest under Section 11AB and imposition of mandatory penalty under Section 11AC of the Act. 4. The learned Counsel for the respondents submits that the supply of sugar on loan basis was in terms of the order of the Ministry of Food & Civil Supplies, Government of India vide order dated 27-10-1997, a copy of which was endorsed to the jurisdictional Central Excise authority. Similarly, the order of the said Ministry dated 29-11-1999 treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ota and the order dated 29-11-1999 converting the said supply into free sale sugar quota was known to the department inasmuch as copies of these orders have been endorsed to the department. Therefore, the department cannot allege suppression on the part of the respondent assessee. Prior to 11-5-2001, interest under Section 11AB of the Central Excise Act could be demanded only when suppression, collusion, wilful mis-statement, fraud, contravention of the rules with an intent to evade duty etc. were proved. W.e.f. 11-5-2001, interest under Section 11AB was made applicable in all situations wherever there was a short levy or short payment, non-levy or non-payment or erroneous refund of duty and the said interest liability was payable where dif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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