MADHUKAR SSK LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appeal is directed against Order -in -Appeal No. CEX -XI/JMJ/381/916/APL/NSK/2004, dated 20 -9 -2004 passed by Commissioner of Central Excise (Appeals), Nashik. Vide the impugned order, the learned lower appellate authority has upheld the duty demand of Rs. 5,17,473/ - along with interest thereon confirmed against the appellant, M/s. Madhukar SSK Ltd. along with imposition of penalty of an equivalent amount under Section 11AC of the Central Excise Act read with Rule 173Q of the Central Excise Rules, 1944. Aggrieved of the same, the appellant is before us.

(2.) THE facts relevant to the case are briefly as follows:

(3.) THE learned Additional Commissioner (AR) appearing for the Revenue on the other hand contends that initial order directing clearances of sugar under levy quota was subsequently modified and the clearances were treated as clearance under free sale quota. The appellant also received consideration from the Directorate of Sugar applicable to clearance under free sale quota. Further, as per Circular No. -SPY(D -II), dated 29 -11 -1999, the Directorate of Sugar had clarified that when the levy sugar is converted into free sale quota, the sugar mills should pay excise duty applicable to free sale quota and the differential duty will be reimbursed to the sugar mills on production of payment of excise duty applicable for free sale sugar. Thus, the appellant was eligible for reimbursement of duty from Government. In spite of these correspondences, the fact of conversion of levy sugar to free sale sugar was never intimated to the department by the appellant and therefore, the extended period time has been rightly invoked and consequently the confirmation of demand with interest along with equivalent amount of penalty under Section 11AC are sustainable in law. He relies on the decision of this Tribunal in UP State Sugar & Cane Development Corporation Ltd. v. CCE, Allahabad - : 2009 (242) E.L.T. 260 (Tri. -Del.) and Shree Satpuda Tapi Parisar SSK Ltd. v. CCE, Nasik - : 2013 (297) E.L.T. 410 (Tri. -Mumbai) wherein it was held that when levy sugar quota is converted into free sale sugar, subsequently the appellant is liable to discharge differential duty applicable to free sale sugar along with interest thereon. Accordingly, he pleads for upholding the impugned order.