9911796707
TMI Blog2012 (12) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... levy sugar at the price fixed by the Government which for the purpose of charging duty was classifiable under sub-heading No. 170131. The remaining production of sugar was free sale sugar which was classifiable under sub-heading No. 170139. The rates of duty for levy sugar and free sale sugar were different. Directorate of Sugar, New Delhi vide order dated 20-9-97 directed some sugar mills including the appellant to sell a specific quantity of sugar as "levy sugar" out of their free sale quota of 1996-1997 sugar season. The appellant, in pursuance of the Government's order dated 20-9-97 cleared the specified quantity of sugar out of their free sale quota as levy sugar at the price fixed for levy sugar on payment of duty applicable to levy s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same attracted only when non-payment or short payment of duty was due to fraud, wilful misstatement, mis-declaration, suppression of facts, etc., on the part of the assessee, that in this case, these factors are absent, as the appellant had paid the differential duty on their own and hence the provisions of Section 11AB and 11AC would not be attracted, that in this regard, he relies upon the judgement of the Tribunal in cases of U.P. State Sugar & Cane Dev. Corpn. Ltd. v. CCE, Allahabad reported in 2009 (242) E.L.T. 260 (Tribunal-Delhi) and CCE, Guntur v. Kovvur Co-op Sugar Factory Ltd. reported in 2006 (199) E.L.T. 53 (Tribunal-Bang.) when in identical circumstances the Tribunal held that the provisions of Section 11AB and 11AC are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in October, 1998, vide letter dated 13-10-98, the Sugar Directorate informed the Sugar Mills that difference, if any, on account of rate of duty for free sale sugar and levy sugar would be borne by the Government; (d) Subsequently the appellant received the communication in this regard from Indian Sugar Mills Association (ISMA) and on 7-6-2001, worked out the differential duty as Rs. 5,11,797 and paid the same; and (e) The appellant received the differential duty reimbursement from the Government on 3-8-2001. 6.1 Though during the period of dispute, the classification of sugar and hence, the rate of duty applicable depended upon the nature of clearance - whether for free sale or as levy su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same existed during period prior to 11-5-2001, interest under this Section was chargeable only in those cases where short-payment, non-payment or erroneous refund of duty were due to fraud, wilful mis-statement, mis-declaration, suppression of facts, etc. Though in this case, show cause notice has been issued on 21-9-2001, as per the provisions of sub-section (2) of Section 11AB, as it stood w.e.f 11-5-2001, the provisions of new sub-section (1), coming in force, w.e.f 11-5-2001 will not apply to cases when the duty had become payable or ought to have been paid prior to 11-5-2001. In view of above, in this case, it is the provisions of Section 11AB, as the same stood prior to 11-5-2001 which would apply and since in this case, the frau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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