9911796707
TMI Blog2014 (3) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... fferential amount in the month of November, 2001 - show cause notice was issued demanding duty along with interest and also proposing to impose penalty - Held that:- w.e.f. the 11-5-2001 the provisions of Section 11AB of the Central Excise Act were amended and the provisions of Section 11AB was made applicable in all situations wherever there was a short levy or short payment, etc., of duty. In view of this the applicants are liable to pay interest w.e.f. 11-5-2001 till the payment of differential duty. In respect of penalty the manufacturer is clearing sugar as per the directions to the Food Corporation of India as per the director of Government of India decided that the Free Sale Sugar which was cleared on loan basis as levy sugar to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that appellants are engaged in the manufacture of sugar. During the period from October, 1997 to November, 1997 the manufacturer has cleared 1585 MTs of sugar on loan basis to M/s. Food Corporation of India (FCI) in terms of the Ministry of Food Civil Supply of the Government of India order dated 27-10-1997. The appellants were directed to clear the levy sugar, as the quota of levy sugar was not available. The free sale sugar was cleared by discharging the duty liability, as the rate applicable to levy of sugar. Subsequently, 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 between the levy of sugar and Free Sale Sugar. The manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest liability was payable where differential duty was determined by the department or the assessee himself discharged the differential duty liability. In the present case as differential duty has been paid in the month of September, 2012. Therefore the manufacturer is liable to pay interest from 11-5-2001 from the date of clearance to the date of payment of duty. 8. In respect of penalty the Revenue submitted that appellant had not informed the Revenue regarding clearance of levy sugar and in respect of clearance of duty. It is also submitted that though the appellant cleared the sugar against the quota of levy sugar though charge the duty as applicable to the Free Sale Sugar hence, there is an intention to evade payment of duty. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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