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TMI Blog2017 (3) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Act, 1994 is at stake. Issue agitated is the classification of 'sugar' manufactured by appellant, M/s Jawahar Shetkari Sahakari Sakhar Karkhana Ltd, in order-in-original no. 11/2006 dated 5th July 2006 of Commissioner of Central Excise, Pune under heading 1701.39 of First Schedule to the Central Excise Tariff Act, 1985. 2. In the challenge by M/s T K Warana Sahakari Sakhar Karkhana Ltd the duty for the period from 1st October 2001 to 31st December 2002 to the extent of Rs. 59,07,924/-, interest thereon and penalty under section 11AC of Central Excise Act, 1994 is at stake. 3. The tariff, though scientific in most parts, does have its angularities and the classification of 'sugar' in those days was one such - the classification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 1,82,279 quintals for 2001-02 against the actual clearance of 1,11,605 quintals and 3,48,347 quintals respectively during the two periods by discharging the lower duty liability. Demand having been confirmed, appellant brought the matter to the Tribunal and the original authority was ordered to decide the matter afresh bearing in mind the 'b) The lower authority order on perusal is found to have not had the benefits of clarification issued by Commissioner of Sugar, Government of Maharashtra dtd 29/3/05 informing that Ministry of Consumer Affairs Foods & Public Distribution, Directorate of Sugar, Government of India is continuously adjusting short/excess dispatch of levy sugar in subsequent seasons & excess dispatch in one particular seas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and the rather specious argument that the notice did not question the sale against 'release order' but the classification as 'release order' does not specify that sugar covered by 'release order' is 'levy sugar'. 7. After reproducing the clarification that the Tribunal had opined to be relevant to a decision in the matter, the impugned order has discarded it thus: '27. It is clear from the above that even Commissioner of Sugar has admitted and accepted that there is excess dispatch of levy sugar in a particular year. In other words, certain quantity of free sale sugar has been cleared as levy sugar. The question is what should be the classification of such sugar. The argument advance is that this free sale sugar gets adjusted in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee sale quota' as a loan at 'levy' prices but reimbursed with the differential price later by the Central Government. Likewise the decision of the Tribunal in Kanoria Sugar & Genl. Mfg. Co. Ltd v. Commissioner of Central Excise, Allahabad [2008 (226) ELT 590 (Tri-Del)] pertains to a case in which the Central Government undertook to reimburse the differential duty to the manufacturer. In the decision of the Tribunal in Jind Coop. Sugar Mills Ltd v. Commissioner of Central Excise, Delhi-III [2004 (178) ELT 841 (Tri-Del)], the dispute arose in the context of refund of duty paid in excess on loan quantity supplied from 'free sale quota' which was sought to be adjusted in future 'free sale' by paying duty at 'levy' rates. Citing the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easoning of the first appellate authority is acceptable and we do not find any merits in the grounds raised by the Revenue in appeals. 7.3 Secondly, we find that the issue is now covered by the judgment and order of the Tribunal in the case of Perambulur Sugar Mills (supra). With respect, we reproduce the entire judgment. "Heard both sides. During the period in dispute, the appellant-sugar mill was directed by the Director (Sugar Control), Ministry of Food and Consumer Affairs to divert impugned quantity of sugar from free sale quota and sell the same as levy sugar purely on loan basis. Subsequently, the appellants were compensated by diversion of equal quantity from the levy sugar quota to free sale sugar quota. It is the case of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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