Cess on sugar

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Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2013 My query was related to sugar cess.
It is payable on sale of free sugar, at 24/- ,it is called as cess on sugar, we pay it under excise rules. So it is as good as excise duty, Then my question is we have to pay it with cash only, or can we adjust it by paying through ccr of excise?

Hemant Kumar

Hemant Kumar (Expert)

14 March 2013 You can adjust it through Cenvat Credit Ac.

Hemant Kumar

Hemant Kumar (Expert)

14 March 2013 You can adjust it through Cenvat Credit Ac.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 Cess on sugar is paid to State govt and excise duty is collected by central govt. Then how ccr can be availed?

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2013 Cess on sugar is paid to State govt and excise duty is collected by central govt. Then how ccr can be availed?

Ashish Vaish

Ashish Vaish (Expert)

23 March 2013 Absolutely not, Sugar Cess can not be paid via Cenvat of ED. Sugar Cess is levied under Sugar Cess Act 1982. It is collected along with ED but it is not at all ED. It is just like paper cess collected for the development of the industry.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2013 Sir,
Sugar Cess Act, Section 3 defines it as Excise Duty.
) There shall be levied and collected as a cess, for the purposes of the Sugar Development Fund Act, 1982, a duty of excise on all sugar produced any sugar factory in India, at such rate not exceeding 1[fifteen rupees] per quintal of sugar, as the Central Government may, by notification in the Official Gazette, specify from time to time:

Provided that until such rate is specified by the Central Government, the duty of excise shall be levied and collected at the rate of 2[fourteen rupees] per quintal of sugar.

Please clarify

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

19 July 2024 The provision you've mentioned pertains to the Sugar Cess Act, which imposes a duty of excise (referred to as sugar cess) on all sugar produced in any sugar factory in India. Here's a clarification based on the section you provided:

1. **Levy and Collection:** The Sugar Cess Act mandates the levy and collection of a duty of excise (referred to as sugar cess) on the production of sugar in India. The rate of this cess is determined by the Central Government through notifications published in the Official Gazette.

2. **Rate of Cess:** Initially, until the Central Government specifies a different rate, the duty of excise (sugar cess) is levied at a rate of fourteen rupees per quintal of sugar produced. The Central Government has the authority to adjust this rate up to a maximum of fifteen rupees per quintal through official notifications.

3. **Purpose:** The revenue generated from the sugar cess is intended for the Sugar Development Fund, which was established under the Sugar Development Fund Act, 1982. This fund is utilized for various developmental activities related to the sugar industry in India.

4. **Legal Status:** While termed as a "cess" under the Sugar Cess Act, it operates essentially as an excise duty because it is imposed on the production of a specific commodity (sugar) within India.

In summary, the provision in Section 3 of the Sugar Cess Act establishes the framework for the imposition of a duty of excise (sugar cess) on sugar produced in India, with the rate being determined by notifications issued by the Central Government. The revenue collected from this cess is used for the development of the sugar industry through the Sugar Development Fund.

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