TaxTMI 
TaxTMI 
2026 (6) TMI 895
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..... Sugar falling under CTH 1701 of the Central Excise Tariff Act, 1985. On an inquiry by the Jurisdictional Range Officer regarding payment of sugar cess on the quantity of sugar exported, the appellant informed that during the period from October-2016 to June2017 they had cleared 62500 Qtls. of V. P. Sugar to different merchant exporters for export under CT-1 certificates without payment of central excise duties including sugar cess. After conducting investigation, revenue was of the view that the appellant was liable to pay sugar cess on clearance of 62500 Qtls. of sugar to merchant exporters @Rs.124 per Quintal and therefore, a show cause notice dated 12.02.2018 was issued to the appellant demanding sugar cess of Rs.77,50,000/- under Sect....
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.... The said Circular clearly incorporates that cess is liable to be paid unless it is exempted by a Notification which in their case has been done vide above Notification dated 30.07.1993 of Ministry of Food. * Hon'ble Karnataka High Court in the case of Shree Renuka Sugars Ltd reported at 2014 (302) ELT 33 (KAR) has held that sugar cess is a kind of duty of excise. Therefore, exemption from payment of cess in case of export of sugar is available even under Notification No.42/2001-CE (NT) dated 26.06.2001. * They are not liable to pay any interest as sugar cess itself is not payable by them. On the same ground, they are also not liable to any penalty as imposed by learned Adjudicating Authority and upheld in the impugned ord....
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....78; d. The National Calamity Contingent Duty (NCCD) leviable under section 136 of the Finance Act, 2001, as amended by Section 169 of the Finance Act, 2003 which was amended by Section 3 of the Finance Act, 2004; e. Any Special Excise Duty collected under a Finance Act. f. Additional duty of excise as levied under section 157 of the Finance Act, 2003. g. The Education Cess on excisable goods as levied and collected under section 91 read with section 93 of the Finance (No. 2) Act, 2004. h. The additional duty of excise leviable under clause 85 of the Finance Bill, 2005. i. Secondary and Higher Education Cess on excisable goods leviable under clause (126) read with clause (128) of the Fina....
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.... is reproduced as under:- Sugar Leviable under Sugar Cess Act, 1982 (3 of 1982) read with Sugar Development Fund Act, 1982 (64 of 1982) Sugar Produced by Any factory in India Rs.15 per quintal (a) Rs.14 per quintal (b) Sugar exported out of India exempted from whole of the cess Vide Ministry of food Notification S.O. No. 585 (E) Dated 30.07.1993 5.2 Appendix- III of the Central Excise Tariff Act has from time-to-time incorporated rate of sugar cess leviable on sugar produced by any factory in India. We however find from the Central Excise Tariff Act for different years including the period in dispute, that varying rate(s) of sugar cess was levied on domestic clearances of sugar but sugar exported out of India was exe....
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....xcise, leviable under sub-section (1) of Section 3 of the said Act, on sugar exported out of India, with immediate effect." 5.4 The above legal position leaves no doubt in our minds that sugar cess was exempt for that quantity of sugar which is produced in India but exported out of country. We further find that neither the show cause notice nor the impugned order disputes the fact of export of 62500 Qtls. out of India and therefore, by virtue of above Notifications, we are of the view that sugar cess is not payable on above quantity. 5.5 We also find that the matter is no more res-integra as this Tribunal vide Final Order No. A/11367/2018 dated 05.07.2018 in the case of Shree Madhi Vibhag Khand Udyog Sahakari Mandli Ltd has decided sa....