Export exemption for sugar cess applies where cess is treated as excise duty and excise exemptions govern its collection.

Sugar cess, though levied under the Sugar Cess Act, 1982, is treated as a duty of excise, and the Central Excise Act, 1944 and its exemption framework apply to its levy and collection. On that basis, the export exemption under Notification No. 42/2001-CE (NT) dated 26.06.2001 extended to sugar cess as well, so cess was not payable on export clearances of sugar. The tribunal followed the reasoning already applied in the appellant's own earlier case on identical facts and held that the demand could not be sustained.

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Issues: Whether sugar cess is payable on export of sugar when clearance is made under Notification No. 42/2001-CE (NT) dated 26.06.2001.

Analysis: Sugar cess under the Sugar Cess Act, 1982 is levied and collected as a duty of excise. The statutory scheme also applies the provisions of the Central Excise Act, 1944 and the rules made thereunder, including exemptions, to the levy and collection of sugar cess. On that basis, the exemption available for export clearances under the notification extends to sugar cess as well. The issue was treated as already decided in the appellant's own case on identical facts, and the same reasoning was followed here.

Conclusion: Sugar cess was not payable on the export of sugar under the notification, and the demand could not be sustained.

Ratio Decidendi: Where a cess is statutorily treated as a duty of excise and the excise exemption framework is made applicable to its levy and collection, the export exemption under the relevant excise notification applies to that cess as well.

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