SHRAVASTI KISAN SAHKARI CHINNI Vs. CCE

JUDGEMENT

(1.) The appellant is a sugar mill. The demand in the present case is in respect of over 9000 qntls. of sugar cleared by the appellant during November and December 1997.

(2.) Facts of the case are that part of sugar produced by a sugar mill is to be supplied as "levy sugar". Levy sugar quantity is fixed by the Government. Levy sugar also attracts a lower rate of duty. The aforesaid clearance of sugar took place on a direction by the Directorate of Sugar to supply this quantity as additional quantity of levy sugar. It is not disputed that sugar in question was supplied as "levy sugar". The demand has been raised claiming duty at the higher rate applicable to full sale sugar merely on the ground that Directorate of Sugar vide their letter dated 13.10.88 had intimated that the difference of duty between free sale sugar levy sugar would be reimbursed by the Government of India. However, no reimbursement has taken place, since original payment of duty way at rate applicable to levy sugar and the appellant had not produced proof of payment of duty at higher rate.

(3.) The submission of the appellant is that since sugar had actually been cleared as levy sugar in accordance with the order of Directorate of sugar, the original payment of duty made by it was correct and there is no short levy involved. It has also been submitted that though the subsequent 1998 letter indicated that differential duty will be reimbursed by the Ministry, no such reimbursement has taken place. The appellant has also submitted that this issue remains settled in favour of the appellant by the decision of this Tribunal in the case of Shri Bhagwati SSK Ltd. and Anr. v. Commissioner of Central Excise, Pune, 2000 (36) RLT 11 wherein this Tribunal held that subsequent increase of price by the Court would not apply to sugar already cleared as levy sugar at prices fixed by the Government.