1984 (3) TMI 381

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....orce. This system was fed by levy sugar cleared from sugar factories under the Sugar Control Order issued under the Essential Commodities Act, 1955. Exemption Notification No. 317/77-C.E., dated 16-11-1977 fixed concessional rate of duty for such levy sugar, "being sugar required by the Central Government to be sold under clause (f) of sub-section 2 of (section 3) of the Essential Commodities Act, 1955". The system briefly worked as follows. Government of India issued release orders for a certain quantity of levy sugar to be released from each sugar factory, for being sold to the State Governments or their nominees. Thereafter, the State and the District authorities concerned issued allotments for selling the said levy quota to various allo....

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.... of levy sugar prior to the de-control on 16-8-1978. The remaining quantity of 12,507 quintals was later sold by them in the free sale market. The lower authorities have held that the sugar sold in the free market was not entitled to payment of duty at the concessional levy rate and hence the demand for differential duty from the appellants. 3. When the matter came up before us today, the appellants maintained that as on the date of its clearance on 14-8-78, the character of the subject sugar was that of levy sugar and that it was not their fault if, after the decontrol and abolition of the distinction between levy sugar and free sale sugar, and also because of fall in the market price, the allottees did not come forward to lift the....