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Appellate Tribunal rules in favor of appellant, setting aside sugar cess demand. The Appellate Tribunal CESTAT AHMEDABAD, in a case concerning sugar cess payable on the export of sugar, set aside the demand against the appellant. The ...
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Appellate Tribunal rules in favor of appellant, setting aside sugar cess demand.
The Appellate Tribunal CESTAT AHMEDABAD, in a case concerning sugar cess payable on the export of sugar, set aside the demand against the appellant. The Tribunal found that the levy of sugar cess had been exempted by a Ministry of Food notification and a CBEC Circular clarified that cess is payable unless exempted. Considering these points and a previous order in favor of the appellant, the Tribunal allowed the appeal, providing consequential relief as per law.
Issues: 1. Whether the sugar cess is payable on export of sugar during the relevant period.
Analysis: The appeal was filed against an order-in-appeal passed by the Commissioner (Appeals-II), Central Excise, Customs, and Service Tax-Vadodara. The appellant, engaged in the manufacture of V. P. Sugar and Molasses, exported sugar under Notification No. 42/2001-CE (N.T.) dated 26.06.2001. A show cause notice was issued for recovery of sugar cess amounting to Rs. 38,16,000/- with interest and penalty. The demand was confirmed with interest and penalty under Rule 25 of the CER, 2002. The appellant contended that the sugar cess on export of sugar was exempted by the Ministry of Food vide Notification No. 585 (E), dated 30.07.1993, and referred to the Central Excise Tariff Act, 1985. They argued that since sugar cess was exempted on export, the confirmation of demand was legally incorrect. The appellant also highlighted a previous order by the Ld. Commissioner (Appeals) setting aside a similar demand in their favor.
The Revenue, represented by Ld. AR, supported the findings of the Ld. Commissioner (Appeals) and mentioned that a previous order in favor of the appellant had been accepted by the department. The Tribunal examined whether sugar cess was payable on the export of sugar during the relevant period. It was noted that the levy of sugar cess had been exempted by a notification issued by the Ministry of Food dated 30.07.1993, as mentioned in Appendix-III of the Central Excise Tariff Act, 1985. Additionally, a Circular of the CBEC dated 20.03.2007 clarified that cess is payable unless exempted. Considering these points and the previous order by the Ld. Commissioner (Appeals) in favor of the appellant, the Tribunal found no merit in the impugned order. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief as per law.
This judgment by the Appellate Tribunal CESTAT AHMEDABAD, delivered by Dr. D. M. Misra, Member (Judicial), addressed the issue of sugar cess payable on the export of sugar during the relevant period. The detailed analysis considered legal provisions, notifications, and previous orders to conclude that the sugar cess was exempted for the appellant, leading to the setting aside of the demand against them.
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