Bajaj Hindustan Ltd. Vs. C.C.E.

Bajaj Hindustan Ltd. vs C.C.E.

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Jul 21, 2006

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Citation: sooperkanoon.com/43179
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Judge: Author: C Nair
Decided On: Jul 21, 2006
Subject: MRTP

Case Summary

AI-generated summary - not the official court judgment text.

MRTP

Key legal issue: MRTP

Parties & Advocates

Appellant / Petitioner

Bajaj Hindustan Ltd.

Respondent

C.C.E.

Legal References

Reported In: (2006)(111)ECC443

Excerpt

.....on the statutorily fixed price. however, since the price fixed for levy sugar was uneconomical, it moved the high court and obtained interim order for charging a higher price. similar relief was obtained from high courts by some other sugar manufacturers also. however, excise duty was paid only at the statutorily fixed price. the litigation concluded with the 22.9.93 judgment of the hon'ble supreme court in the case of malaprabha co-operative sugar factory ltd. (1994) 1 scc 648. in terms of this judgment, the government of india re-fixed levy price for the years 1974-75 to 1979-80.3. under the impugned order, differential duty demand of over rs. 30 lakh has been confirmed against the appellant on the ground that it should have discharged duty on levy sugar cleared by it during the period march 1978 to november 1980 by treating the higher value realised in terms of the high court order as the assessable value. the present appeal is directed against that demand.5. it is seen that the same dispute had arisen between the parties in regard to another factory, and the matter remains settled in favour of the assessee by final order no. 516-519/04-nb(a) dated 21.5.04 in appeal no. e/1631-33/04 and e/1641/04-nb(a). we may read that order. when these applications for stay came up for hearing, we find that the appeals themselves can be disposed of . the circular no. 589/26/01-cx dated 25.9.01 issued by the board is an answer to the dispute raised herein. 2. the issue relates to liability to excise duty on the amount subsequently received by the appellants towards ex-factory price pursuant to a decision of the hon'ble supreme court in the case of malaprabha co-operative sugar factory ltd. v. uoi . in shri bhagywati ssk ltd. v. c.c.e, pune , tribunal took the view there is no central excise duty liability on the additional amount of price received pursuant to the decision of the hon'ble supreme court. the ratio of the above decision was followed in other cases also. 3. it.....

Full Judgment

1. The appellant is a manufacturer of sugar. Sale and distribution of sugar has been under Central Government control for the last several decades. Part of sugar produced by a mill is allowed to be sold as "Free-Sale" sugar. The remaining is required to be sold ("Levy Sugar") at control price for public distribution. The statutorily fixed price for levy sugar is required to form assessable value for the purpose of central excise duty.

2. The appellant was disposing of sugar produced by it in the above terms. In regard to levy sugar, the appellant was discharging duty on the statutorily fixed price. However, since the price fixed for levy sugar was uneconomical, it moved the High Court and obtained interim order for charging a higher price. Similar relief was obtained from High Courts by some other sugar manufacturers also. However, excise duty was paid only at the statutorily fixed price. The litigation concluded with the 22.9.93 judgment of the Hon'ble Supreme Court in the case of Malaprabha Co-operative Sugar Factory Ltd. (1994) 1 SCC 648. In terms of this judgment, the Government of India re-fixed levy price for the years 1974-75 to 1979-80.

3. Under the impugned order, differential duty demand of over Rs. 30 lakh has been confirmed against the appellant on the ground that it should have discharged duty on levy sugar cleared by it during the period March 1978 to November 1980 by treating the higher value realised in terms of the High Court order as the assessable value. The present appeal is directed against that demand.

5. It is seen that the same dispute had arisen between the parties in regard to another factory, and the matter remains settled in favour of the assessee by Final Order No. 516-519/04-NB(A) dated 21.5.04 in Appeal No. E/1631-33/04 and E/1641/04-NB(A). We may read that order.

When these applications for stay came up for hearing, we find that the appeals themselves can be disposed of . The Circular No. 589/26/01-CX dated 25.9.01 issued by the Board is an answer to the dispute raised herein.

2. The issue relates to liability to excise duty on the amount subsequently received by the appellants towards ex-factory price pursuant to a decision of the Hon'ble Supreme Court in the case of Malaprabha Co-operative Sugar Factory Ltd. v. UOI .

In Shri Bhagywati SSK Ltd. v. C.C.E, Pune , Tribunal took the view there is no Central Excise duty liability on the additional amount of price received pursuant to the decision of the Hon'ble Supreme Court. The ratio of the above decision was followed in other cases also.

3. It was in the above background, Circular dated 25.9.01 was issued. The Circular reads as under: 'Sub: Recovery of Central Excise duty on account of fixation of ex-factory prices of levy sugar for 1974-75 to 1979-80 sugar seasons.

It has been brought to the notice of the Board that demands raised by some Commissionerates on revision, of ex-factory prices of levy sugar for 1974-75 to 1979-80 sugar seasons, by Ministry of Food in view of Supreme Court's judgment in the case of Malaprabha Co-operative Sugar Factory Ltd. v. Union of India, have been set aside by CEGAT vide Order Nos. C-I/2368-2371/99-WZB, dated 12.9.99 in the case of M/s Bhagwati S.S.K. Ltd. v. C.C.E., Pune. The appeal against this order has been dismissed by the Supreme Court vide order dated 28.7.2000 in Dy. No. 778/2000. CEGAT has also, vide Order Nos. C-I/289-299/99-WZB dated 5.11.99, in the case of Vasantdada S.S.K. Ltd. v. C.C.E., Pune -II and vide Order Nos.

C-II/1697-1704/99-WZB dated 17.7.99 in the case of Shri Siddhasiwa S.S.K. Ltd. v. C.C.E., Pune, set aside the appeals of the Department on the same issue. The appeal filed by the Department in the case of Vasantdada S.S.K. Ltd. v. C.C.E., Pusne -II has been dismissed by the Supreme Court vide Order dated 15.12.2000 in Dy. No. 4389/2000.

In the case of Shri Siddhasiwa S.S.K. Ltd. v. C.C.E., Pune, Ministry has decided not to file any appeal.

2. In the circumstances, the field formations are advised to dispose of the pending show-cause notices on this issue on merits and keeping in view the above said judgments.

3. In the light of the above, we find that the demand confirmed in the impugned orders cannot be sustained. The impugned orders are, therefore, set aside and the appeals stand allowed." 6. It is seen that the SLP filed against the above order remains dismissed. In these circumstances, there is no merit in the revenue's case.

7. In the result, the impugned order is set aside and the appeal is allowed with consequential relief, if any, to the appellant.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Bajaj Hindustan Ltd. vs C.C.E. Same Subject MRTP Same Judge Author: C Nair