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TMI Blog2015 (11) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... ll these appeals are the same, though the respondent assesses are different. 2. The revenue has filed all these appeals and one of the assessee has filed a cross objection. 3.Both sides agree that the issue is the same in all these appeals and for brevity sake we take the facts from appeal number E/2611/05. 3. Heard both sides and perused the records. 4. The issue that arises for our consideration is that the respondents herein are sugar factories and are controlled by the provisions of Essential Commodities Act and the Levy Sugar Supply (Control) Order, 1979 as to the clearances of sugar manufactured in their factories. The respondent assessees are required to clear a particular percentage of sugar as levy sugar which is classified und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of the Tribunal in the case of Perambalur Sugar Mills Ltd 2010 (262) ELT 396. It is his further submission that the clearance of free sale sugar as Levy sugar, in excess of allotted Levy sugar, is as per the directions of the State Government or the Central Government, hence the respondent assessee should not be put to a disadvantage by holding that they are liable to pay Central Excise duty at higher rate. 7. On consideration of the submissions made by both sides, we find that the impugned orders are correct and legal and no interference is called for more than one reason. 7.1. Firstly, the clearance of free sale sugar by the respondent sugar factories are as per the direction and order of the State or the Central Government, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leared in excess of levy entitlement of the appellant is classifiable under CSH 1701.39 attracting Central Excise duty @ Rs. 85/- per quintal; that the excess quantity of sugar was out of the free sale quota, and only such percentage of production .of sugar required and ordered by Central Govt. can be classified as "Levy sugar" under CSH 170'1.31 which has been ordered under Section 3(2)(f) of the Essential Commodities Act, 1955 and the remaining even if cleared to State Govt. merits classification under CSH 1701.39. I find that The Levy Sugar Supply. (Control) Order, 191'9 itself has been made by the Central Govt. in exercise of powers conferred by Section 3 of the Essential Commodities Act, 1955. It is seen that the release orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Levy Sugar Supply (Control) Order, 1979, the same falls under the category of supply requisitioned by Central Government under Section 3(2)(f) of Essential Commodities Act, 1955. The clearance of said levy sugar in this case,; therefore, falls under CSH 1701.31 of the Central Excise Tariff Act, 1985. It is also relevant to mention in this regard that Ministry of Food and Consumer Affairs, Department of Sugar and Edible Oils, Directorate of Sugar, New Delhi has vide F.No. 5-5(Karnataka)/96-SC.1I issued order dated 26.3.1999, wherein it has been clearly stated that in accordance with Section 3(2)(f) of Essential Commodities Act, 1955 and clause (2)(1) 0'( Levy Sugar Supply (Control) Order, 1979, all factories are to comply with the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived any compensation by way of differential duty from the Govt. of India in respect of the free sale sugar diverted to levy sugar quota. 3. We find that the original authority after going through the case records has dropped the duty demand in view of adjustment of impugned quantity of sugar transferred from free sugar quota to levy sugar and vice versa. 4. We have heard the ld. DR. No material has been produced on behalf of the Department to prove the contrary that appellants have either short paid the duty or they have been any way compensated by the Govt. of India and thereby they have enriched themselves at the cost of the Govt. revenue. Hence, we are of the view that the impugned order passed by the lower appellate authority reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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