ORDER
S.S. Sekhon, Member (Technical)
1. The appellants are manufacturer of sugar and were allotted export quota for export of sugar by the Directorate of Sugar, Ministry of Food, Govt. of India from time to time. This was required to be exported thought M/s. Indian Sugar and General Industry, Export Import Corporation Ltd., New Delhi (herein after referred to as SIECL), the export agency nominated as Agency for Export of Sugar by Government of Indian notification. They out of total 29,404 Qtls. Of sugar allotted as export quota affected exports of only 2100 Qtls. The remaining quantity was diverted in the domestic market. The export quota was fixed as per the provisions of Section 5 of Sugar Export Promotion Act, 1958 Section 7(1) of the said Act, providers that if the sugar delivered by the manufacturer falls short of the export quota fixed, a duty was to be levied as duty of excise at rate of Rs. 45.55 per quintal which was to be collected on so much of the sugar despatched for consumption in India Sub-section 7(2) of the said Act, provides that this duty of excise was to be in addition to the duties of Central Excise levied under the Central Excise Tariff Act, 1985 read with Section 3 of the Central Excise Act, 1944 inquires made with the export agency revealed that the appellants had been cleared of the export obligations. However, the lower authorities did not consider the explanation offered by the agency and confirm duty demands and penalties under the provisions of Sugar Export Promotion Act, 1958 and Sugar Export Promotion Rules, 1973 and Rule 210 of the Central Excise Act.
2. The Commissioner (Appeals) confirmed the order of the lower authority without considering the pleas made by the appellants, especially the certificate endorsed as regards the export quota fulfillment, issued by the Export Agency, and Section 8 of the Sugar Export Promotion Act, 1958, provides that under special circumstances the sugar meant for export could be sold in the domestic market, this section specifically permits sale of whole or part of the quota sugar as agency thins fit. Therefore the provisions of this section have to be considered and applied and only thereafter duties under the provisions of Section 7 could be determined, in this view of the matter is required to be remitted back to the original authority for re-determined of the material. Certificates produced by the appellants and re-determine the duty and consequently the penalty, if any, in this case.
3. Appeal allowed as remand.
(Pronounced in Court)
