Circular No. 589/26/2001-CX, dated the 25/09/2001

Recovery of CE Duty of Account of Fixation of Ex-Factory
Prices of Sugar
Subject:- Recovery of Central Excise duty on account of fixation of ex-facotry prices of levy sugar for 1974-75 to 1079-80 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 1979-90 sugar seasons, by Ministry of Food in view of Supreme Court Judgement in the case of Malaprabha Cooperative Sugar Facotry Limited Vs. Union of India, have been set aside by CEGAT vide order No. C-I/2368-2371/99 WZB dated 12.9.99 in the case of M/s Bhagwati S.S.K. Limited vs. CCE, 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 NO. C-II/289-299/99 WZB dated 5.11.99, in the case of Vasantdada S.S.K. Limited vs. CCE, Pune-II and vide Order No. C-II/1697-1704/99/WRB dated 17.7.99 in the case of Shri Siddhasiwa S.S.K. Limited vs. CCE, 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. Limited Vs. CCE, Pune-II has been dismissed by the Supreme Court vide order 15.12.2000 in Dy. No. 4389/2000. In the case of Shri Siddhasiwa S.S.K. Limited Vs. CCE, 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 notice on this issue on merits and keeping in view the above said judements.

3. Receipt of this circular may please be acknowledged.

Sd/-
(S.C.Bhatia)
Under Secretary (CX.4)

F.No. 14/1/95-CX.1

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