2010 (4) TMI 482

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....t is that even the price that was fixed by the Government was not received by the appellant and what that was received was much less than the price fixed. When the matter went to Hon'ble High Court of Allahabad about the price fixation of levy sugar, Hon'ble High Court of Allahabad in Writ Petition No. 1408 of 1978 by an order dated 22-3-1978 directed that FCI shall pay excise duty liability if that shall be payable in excess as a result of fixation of the price of the levy sugar at higher price. In case of purchases made by other nominees of the Central Government, it was directed that excess excise duty shall be payable on the price claimed by the petitioners and the petitioners shall be liable to deposit excess excise duty. Accordingly l....

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....rment is attributable to liability on goods manufactured. Order passed by the Authorities below is proper and interest shall be payable as has been observed by the ld. Adjudicating Authority. 4. Heard both sides and perused the records. 5. There is no difference to say that event of levy of central excise duty is manufacture of excisable goods under Section 3 of Central Excise Act, 1944. Measure of levy is prescribed by Section 4 thereof with reference to event of levy. As a measure of convenience of recovery, duty payment is deferred till the date of clearance. Reading Sections 3 and 4 together with relevant Rules made under Central Excise Act, 1944 throws light that levy of duty on differential price is directly attributable to the ....