COLLECTOR OF CENTRAL EXCISE, HYDERABAD Vs. NIZAM SUGAR FACTORY
LAWS(APH)-1972-3-31
HIGH COURT OF ANDHRA PRADESH
Decided on March 13,1972

COLLECTOR OF CENTRAL EXCISE, HYDERABAD Appellant
VERSUS
NIZAM SUGAR FACTORY Respondents

JUDGEMENT

OBUL REDDI,J. - (1.) This writ appeal is directed against the judgment of our learned brother Ramachandra Rao, J. allowing the writ petition filed by the respondent, the Nizam Sugar Factory, Hyderabad for the issue of a Writ of Certiorari quashing the order of the Asstt. Collector, Central Excise, dated 16-9-1967 which was confirmed by the Collector, Central Excise by his order dated 8-8-1968 rejecting the claim of the respondent for refund of Rs. 7,440.63.
(2.) Mr. Subrahmanya Reddy, the learned Central Government Counsel contended that the question of granting any rebate does not arise at all in this case as no duty was levied on the "dirty or waste sugar" during the relevant year. In other words it is his case that the respondent sought rebate when no such rebate is permissible either under the notification of the Government of India, Ministry of Finance dated 13th February, 1965 or under Rule 8(1) of the Central Excise Rules.
(3.) To appreciate the point raised in this appeal, it is necessary to set out the relevant facts: During the year 1965-66, 3461 quintals of 'C' sugar and dirty sugar of the season 1964-65 was reprocessed by the respondent factory and as a result of the reprocessing 2789.16 quintals of sugar was re?covered while the balance was lost in reprocessing. The Central Excise Department issued a demand notice dated 29-7-1967 to the Factory asking payment of Rs. 7440/- towards excise duty. The amount was paid under protest contending that the levy was illegal as no levy could be made for the loss of sugar while reprocessing. The respondent relied upon the notification and the rule referred to above. But his claim for exemption was rejected by the Asstt. Collector by his order dated 16-9-1967. The appeal to the Collector met with the same result and that led to the filing of the writ petition. Our learned brother construed "sugar" as inclusive of any kind of sugar including defective or dirty sugar and as such the notification does not disentitle the manufacturer to claim rebate on the ground that sugar was not available for consumption or export.;


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