B.P. Jeevan Reddy, C.J. - (1.) THE petitioner is a Public Limited Company duly incorporated under the Indian Companies Act and is manufacturing sugar by vacuum pan process. By means of the present writ petition under Article 226 of the Constitution of India, the petitioner has challenged the order of the Asstt. Collector, Central Excise, Saharanpur, dated 28 -2 -1984 whereby a demand raised against the petitioner for refund of an amount of Rs. 10,94,280/ - has been confirmed.
(2.) THE necessary facts of the case for decision of the writ petition are as under: In order to encourage and maximising the production of sugar, the Central Government in exercise of its powers conferred under Rule 8(1) of the Central Excise Rules, 1944 issued a notification dated 4 -10 -1973. The said notification was amended by another notification, dated 20 -4 -1974. Portions relevant for the purposes of the present case of the aforesaid notifications are being reproduced below: - "BHARAT SARKAR VITTA MANTRALAYA, NEW DELHI DATED THE 4TH OCTOBER, 1973. NOTIFICATION CENTRAL EXCISE G.S.R. In exercise of the powers conferred by sub -rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts sugar, described in column (2) of the Table below and falling under sub -item (1) of Item No. 1 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from so much of the duty of excise leviable thereon as is specified in the corresponding entry in column (3) of the said Table. TABLE S. Description of Sugar Duty of Excise No. (1) (2) (3) 1. ... ... ... ... 2. ... ... 3. Sugar produced in a factory during the period commencing Thirty rupees per from the 1st day of May, 1974, and ending with the quintal. 30th day of June, 1974 which is in excess of 110% of the quantity of sugar produced during the corresponding period in 1973. 4. ... ... 5. ... ... 6. ... ... Provided that the exemption mentioned against Serial Numbers 1 to 4 of the said Table shall not be admissible to a factory which did not work during the base period. Explanation. - In this notification, the expression 'base period' means the period commencing from the 1st day of October, 1972, and ending with the 30th day of September, 1973. ... ... ... ... "GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE AND INSURANCE) NEW DELHI, DATED 20TH APRIL, 1974. NOTIFICATION CENTRAL EXCISE G.S.R. In exercise of the powers conferred by sub -rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby makes the following amendments to the notification of the Government of India in the Ministry of Finance (Department of Revenue and Insurance) No. 189/73 -Central Excise, dated the 4th October, 1973, namely: - In the said notification - (a) In the Table. (i) for Serial Nos. 2, 3 and 4 and the entries relating thereto, the following shall be substituted namely - 2. ... ... 2A. ... ... 2B. ... ... 3. ... ... 3A. Sugar produced in a factory during the period Forty rupees per commencing from the 1st day of May, 1974, and ending quintal. with the 30th day of June, 1974 which is in excess of 180% of the quantity of sugar produced during the corresponding period in 1973 ... ... ... ... In pursuance of the aforementioned notifications, the petitioner Company submitted the requisite information and claimed the rebate in accordance with the conditions stipulated in the said notifications.
(3.) IN the claim, which the petitioner Company, submitted for rebate, it was specifically mentioned that in the months of May and June, 1973, there was no production as such 27,357 quintals of sugar produced in the months of May and June was excess production on which rebate was admissible under the aforesaid notifications at Rs. 40/ - per quintal.;