2024 (8) TMI 773

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....01-CE (NT) dated 26.06.2001 for export of sugar. The case of the department is that the goods under Notification No. 42/2001 - CE (NT) can be cleared for export under bond without payment of excise duty. However, the cess is not the excise duty, therefore, the appellant are liable to pay the sugar cess which is being other than excise duty. 2. Shri Devashish K. Trivedi, learned Counsel appearing on behalf of the appellant submits that the issue is no longer res-integra as the same issue in the appellant's own case has been decided in favour of the appellant vide Final Order No. 11047-11049/2024 dated 14.05.2024. He requests that this appeal may also be disposed of considering this Tribunal decision dated 14.05.2024. 3. Shri Himanshu P....

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....ovision it is clear that even though the sugar cess is levy under the Sugar Cess Act, 1982 by virtue of the provisions under sugar cess act, the sugar cess is considered as excise duty for all the purposes, therefore, even the exemption granted to excise duty under Central Excise notification shall apply mutandis- mutandis in respect of sugar cess also. 4.2 The decision in the case of Indian Sugar Exim Corporation Ltd directly applies on the issue in hand wherein the Tribunal has passed the following order:- "This appeal is directed against the Order-in-Appeal No. SDK(1964)288/MI/2002 dated 31-12-2002. 2. Relevant facts that arise for consideration is that respondent had executed a bond of Rs. 20 crores for cleara....

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....and perused records. It is seen that learned Commissioner (Appeals) while setting aside the interest liability on the Sugar Cess (paid by respondent on diversion to local consumption) held as under:- "However, the position in law governing interest on cess payments, and interest thereon, would be different. While Sugar Cess Act recognized this cess to be para material with duties of excise, inter alia in application of the procedural provisions of Central Excise law in its collection and for other purposes, the specific law contained in Notification No. 41/2001 does not cover the liability for payment of cess, and interest charges, arising from diversion for home consumption. Therefore, while the liability to pay the cess on divers....

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....ommissioner, till the date of payment". 6. We notice that the Sugar Cess is payable as per the provisions of Sugar Cess Act, 1982. Section 3(1) of Sugar Cess Act, 1982, mandates that Cess will be levies and collected as a duty of excise on all sugar produced by any sugar factory in India. Further, sub-section (4) provides that provisions of the Central Excise Act, 1944 and rules made thereunder, including relating to refunds and exemptions from shall apply in relation to the levy and collection of the duty of excise under that Act. ] 7. Notification No. 42/2001-C.E. (N.T.) dated 26th June, 2001 at clause V(b) specifically mandates payment of excise duty and interest thereof on any goods cleared for export is diverted to lo....

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....resent case also, the Sugar Cess Act, 1982 is nothing but the duty of excise. Accordingly, the same treatment to the sugar cess as to the excise duty should be given. Hence, under the facts of the present case in view of the judgment in the case of export of goods by virtue of Notification No. 42/2001- CE (NT) the appellant is not liable to pay sugar cess. Moreover, as per Notification issued vide Circular No. 10/93 CX.08 dated 01.09.1993 in case of export of sugar, the sugar cess is exempted. The notification is reproduced below:- Circular No. 10/93-CX.8, dated 1-9-1993 [From F.No.261/12/42/92-CX.8] Government of India Central Board of Excise & Customs New Delhi Subject: Sugar Cess Act, 1982-Exemption of Cess on Sugar to be ....