9911796707
TMI Blog1984 (3) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... Sugar Control Order issued under the Essential Commodities Act, 1955. Exemption Notification No. 317/77-C.E., dated 16-11-1977 fixed concessional rate of duty for such levy sugar, being sugar required by the Central Government to be sold under clause (f) of sub-section 2 of (section 3) of the Essential Commodities Act, 1955 . The system briefly worked as follows. Government of India issued release orders for a certain quantity of levy sugar to be released from each sugar factory, for being sold to the State Governments or their nominees. Thereafter, the State and the District authorities concerned issued allotments for selling the said levy quota to various allottees in the districts. One such allotment letter issued by the Director of Foo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 quintals was later sold by them in the free sale market. The lower authorities have held that the sugar sold in the free market was not entitled to payment of duty at the concessional levy rate and hence the demand for differential duty from the appellants. 3. When the matter came up before us today, the appellants maintained that as on the date of its clearance on 14-8-78, the character of the subject sugar was that of levy sugar and that it was not their fault if, after the decontrol and abolition of the distinction between levy sugar and free sale sugar, and also because of fall in the market price, the allottees did not come forward to lift their respective quota. The Bench observed that since in this case, after payment of duty at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sugar cleared by the appellants on their own in anticipation of placement of orders and pre-payment by the authorised allottees could not be considered levy sugar under the Essential Commodities Act, 1955 and hence was not entitled to the concessional rate of duty. However, the fact remains that the disputed quantity of this sugar was actually removed from the appellants factory after 16-8-1978. Rule 9A(1)(ii) is specific inasmuch as it lays down that in the case of goods cleared from a factory, the rate of duty and tariff valuation, if any, shall be as on the date of the actual removal of such goods from such factory. The sugar which was stored in a duty paid godown within the factory on 14-8-1978 cannot be regarded as having been actuall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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