JUDGEMENT
K.S. Viswanathan, Vice-President -
(1.)THIS is a group of seven appeals, two by the department and the rest by the assessee, covering the disputed points arising from the orders of the Commissioner (Appeals) for the assessment years 1977-78 to 1983-84.
(2.)The assessee is a co-operative society running a sugar mill near Nizamabad. The assessee-society was, for the purpose of Levy Sugar Control Order, placed in a particular zone under which the assessee could charge the minimum price fixed for that zone. Sometime in 1968, the Government passed an order shifting the assessee to another zone where the price fixed for sugar was less. The assessee filed writ petition against the change in the zone. The High Court admitted the writ petition and passed interim order allowing the assessee to charge the higher price till the writ petition was disposed of. Thus, for the accounting years 1968 to 1971 covering the assessment years 1969-70 to 1972-73, the assessee had collected over and above the permitted price Rs. 16,97,819. This was offered for assessment in those respective assessment years. There is no dispute that these amounts were taxed.
The High Court disposed of the writ petition in 1972 upholding the order of the Government. The High Court also held that the change would not be applicable for the sugar seasons prior to 1972. Thus, in respect of the excess collections made amounting to Rs. 16,97,819, the assessee was permitted to retain them. Against the order of the High Court holding that the levy sugar order would not be applicable for the seasons prior to 1972, the Government had appealed to the Supreme Court. We understand that this appeal is still pending before the Supreme Court
(3.)IN the meanwhile, the Government had passed an Act called the Levy Sugar Price Equalisation Fund Act, 1976. According to this Act a fund is to be established called the Levy Sugar Price Equalisation Fund. The sugar mills which had collected price over and above what was fixed in the respective zones have to make over such excess collections to the Fund within 30 days of the commencement of the Act. Section 3(3)(b) provides that in case the excess realisation is deposited after the due date, it would attract interest at 121/2%. The Act also provides the purpose for which such funds will be utilised. Machineries are provided for determining the questions of excess realisations and/or other necessary powers to put into force the purpose of the passing of the Act.
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