https://www.taxtmi.com/caselaws?id=114358 For excise purposes, sugar is classified on the basis of its nature at the time of removal from the factory gate, so sugar actually cleared as free sale sugar falls under the tariff entry for free sale sugar and differential duty is payable. A later inter-departmental or reimbursement arrangement does not alter the excise character of the clearance or defeat the duty liability. Penalty is not sustainable where the dispute arises from a special factual arrangement and the record shows no intention to evade duty, even though duty remains payable. en-us Fri, 16 Jul 2004 00:00:00 +0530 Mon, 14 May 2012 18:59:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=114358 For excise purposes, sugar is classified on the basis of its nature at the time of removal from the factory gate, so sugar actually cleared as free sale sugar falls under the tariff entry for free sale sugar and differential duty is payable. A later inter-departmental or reimbursement arrangement does not alter the excise character of the clearance or defeat the duty liability. Penalty is not sustainable where the dispute arises from a special factual arrangement and the record shows no intention to evade duty, even though duty remains payable. Case-Laws Central Excise Fri, 16 Jul 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=114358