ZIRA CO-OP SUGAR MILLS Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) FOR reasons recorded below, we waive pre deposit of Rs.6702/ - confirmed by the authorities below and proceed to hear and dispose of the appeal itself.

(2.) APPELLANT is a sugar mill. They sell molasses to distilleries. During the month of September 1995 they cleared 335.10 qntls. of molasses to various distilleries at a price of Rs. 200/ - per qntl. Central Excise duty was paid treating the sale price of Rs. 200/ - per qntl. as assessable value by the appellant. Departmental authorities took the view that the price of molasses was Rs. 300/ - per qntl. and so differential duty was leviable on the appellant. Show cause notice demanding the differential duty was issued. The actions proposed in pursuant to the show cause notice were opposed. They specifically contended that they received nothing more than Rs.200/ - per qntl. This contention was overruled by the Adjudicating Authority who confirmed the demand made in the notice. On appeal the Commissioner confirmed the order of adjudication. Hence, appeal before this Tribunal. 2. The appellants have asked for decision on merits and hence we heard Ld. D.R. and perused the records. We find that on an identical issue in the assessee's own case, Tribunal has allowed appeal No.E/3479/2008 by Final Order No.40/2001 -A dated 25.1.2001 holding as under"

(3.) APPELLATE authority namely, the Commissioner (Appeals) proceeded on the basis of proviso (ii) to Section 4 (1) (a) of the Central Excise Act to find the actual value of molasses cleared by the appellant. Proviso (ii) to Section 4 (1) (a) reads: -