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TMI Blog2019 (4) TMI 1874X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent is engaged in manufacture of sugar and on account of excessive inventory level and to facilitate achievement of financial liquidity, Department of Food and Public Distribution issued a notification dt.18.09.2015 requiring all sugar factories to export minimum indicative quota of about 12%. The said sugar could be sourced from any other sugar factory. Vide Notification dt.02.12.2015, Ministry of Consumer Affairs notified a scheme of production subsidy of Rs. 4.50 per qtl of cane crushed which was to be used for payment of cane price dues. One of the conditions for such subsidy was that sugar factories should have achieved at least 80% of the target of export quota. To ensure legal compliance of export quota and to obtain prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority allowed the appeal on following 3 grounds - A. Request for re-credit has been rejected without issuing show cause notice. B. No objection has been raised on initial credit. Therefore claim for re-credit cannot be rejected. C. The appellants had availed services to fulfill the export obligation and to receive the production subsidy. Therefore the services were in respect of appellants final product. 4. It is seen that the dispute in the present appeal related to re-credit of duty reversed earlier under protest on the ground that the appellant was not having the requested papers. There was no objection by the Revenue at the time of availment of original credit, which objection cannot be raised at the time of re-credit. As such I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etween Tilaula Sugar Mils Ltd. and ISEC‟. Accordingly, the services procured were in respect of manufacture of final products of the appellant. The adjudicating authority has further stated that the sugar exported was not manufactured by the appellant. In this regard, I find that Department of Food & Public Distribution (Govt. of India) vide Notification F.No.1(10)2015-SP-1 dated 18.09.2015, has stated that the quotas shall be tradable among sugar factories on mutually agreeable terms and condition and further states of a bi-partite/tri-partite agreement between/amongst quota holder sugar factory (which in this case is the appellant), Merchant Exporter (which in this case is ISEC) and the source sugar factory, i.e. from where the suga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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