S.D.Agarwala, J. - (1.) This first appeal is directed against the judgment of the II Additional Civil Judge, Muzaffar-nagar dated 24th February, 1967, decreeing the suit of the plaintiff-respondent, Sir Shadi Lal Sugar and General Mills Ltd. Mansoorpur. The present appeal has been filed by the Union of India.
(2.) Sir Shadi Lal Sugar and General Mills Ltd. is a company registered under the Indian Companies Act carrying on the business of production and sale of Crystal Sugar in Mansoorpur, district Muzaffarnagar. The Company produces sugar by power using vacuum pan process. The excise duty leviable on the sugar prior to 4th of May, 1961 was Rupees 22.15 n. p. per quintal. On 4th May 1961 the Central Government by a notification issued under Rule 8 Sub-clause (1) of the Central Excise Rules, 1944 announced an exemption from the basic excise duty as is in excess of Rupees 11.08 n. p. per quintal in such quantity of sugar produced in a factory during the year commencing 1st November, 1960 as is in excess of the yearly average quantity of sugar produced in that factory during the preceding two years commencing on the 1st November, 1958 and ending with 31st October, 1960.
(3.) Subsequently on 9th of May, 1961 a Trade Notice No. 50/1961 was issued by the Collector, Central Excise, Allahabad clarifying the notice which was issued by the State Government on 4th May, 1961 and further laid down the manner in which the said exemption would be cal-culated.;