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TMI Blog2018 (7) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to pay the excise duty as applicable to levy sugar but however could collect duty at the normal rate and retain the difference between levy sugar and normal sale sugar. 1.1 Thus in 1989, notification No.14/89-CE was in vogue and subsequently amended vide Notification No.103/89 wherein a concessional rate of BED of Rs. 34/- and AED of Rs. 37/- per quintal was prescribed for free sale sugar / normal sale sugar. At the same time for, the levy sugar the rates of duty were BED Rs. 17/- and AED Rs. 21/- per quintal. This resulted in a differential saving of total sum of Rs. 33/- for those units which had the benefit of the incentive scheme. The differential amount was to be used by the new sugar industry in payment of the loans taken for esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire production as free sale sugar for the first eight years and as per, the notification appellant had the benefit of clearing the sugar under lower excise duty. There was thus additional realisation by way of cost of sugar, which were sold to the customers. This additional realisation was to be accumulated by the sugar factory under the scheme to enable the factory to generate funds for repayment of loans from Financial Institutions related to the sugar projects. Thus excise duty paid was Rs. 38/-, while the sugar factory was eligible to retain Rs. 33/- per quintal as incentive. The scheme further envisaged that the sugar factory would have to submit "Utilisation Certificate" annually from Chartered / Cost Accountant in respect of each s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cerned Divisional Officer and also directed the Divisional officer to examine these documents and submit a report as to whether the amount is collected as excise duty or otherwise. He adverted to the report filed by the Assistant Commissioner of the respective Division dated 15.4.2013. The appellant had produced all the documents for the disputed period before the Officer, as directed by the Tribunal and after verification, it has been categorically stated that in all the invoices raised for the sale of sugar, the assessee has shown the collection of the amount of Rs. 33/- as 'incentive' upto the period 30/4/1992. That after 30/4/1992, it is reported that though there is clearance of sugar from incentive free sales quota, in the inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded to the cost of sugar. Thus the appellants have collected the extra cost as incentive / excise duty and are liable to deposit the same to the Central Government. It was also argued by him that the appellants had approached the Hon.High Court of Madras by filing Writ Petition Nos.6288 and 6295 of 1994. The Hon.High Court vide judgment dated 22.7.2010 had opined that if the appellants had collected anything in the nature of excise duty, then they are liable to deposit the same. Hence the confirmation of duty payment is legal and proper. 4. Heard both sides. 5. On perusal of records, we find that at the time of hearing the application for waiver of pre-deposit, the appellant had argued that all the invoices including gate passes are avail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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