- (1.) On 3rd July, 1971 the undertaking of M/s. Ram Lakshman Sugar Mills (hereinafter referred to as the Mills) was transferred to and vested in the U.P. State Sugar Corporation Limited (the Petitioner) under Section 3 of the U.P. Sugar Undertakings (Acquisition) Ordinance 1971, which has been replaced by the U.P. Sugar Undertakings (Acquisition) Act 1971 (hereinafter referred to as (Acquisition Act). The mills were specified in Schedule I to the Act, for the purposes of undertakings specified in Schedule 1 3rd July, 1971 is the "appointed day".
(2.) During the years 1968-69 and 1969-70 the, Mills incurred liabilities to pay additional excise duty on sugar under Section 7 of the Sugar Export Promotion Act, 1958 (hereinafter referred to as the Act). The question is whether the Petitioner is an "owner" within the meaning of Section 2(e) of the Act so that the liability of the Mills may be fastened upon it.
(3.) The relevant facts are in a narrow compass. In purported exercise of power under Section 18-AA of the Industries Development and Regulation Act, 1951, the Central Government appointed the General Manager of the Petitioner Corporation as the Authorised Controller of the Mills. The Authorised Controller managed the Mills from July 1969 to 2nd July, 1971. Even after the vesting of the Mills in the Petitioner on 3rd July, 1971 the Authorised Controller (General Manager) continued to manage the undertaking on behalf of the Petitioner. The rebates realised by the Authorised Controller prior to 3rd July, 1971 was credited to the account of the Mills and placed in the compensation pool in accordance with the provisions of the Acquisition Act. A sum of Rs. 22,896/- which was realised as rebate for the period beginning from 1st October, 1969 and ending on 30th November 1970 had been credited to the account of the owners of the Mills by the Authorised Controller. The rebate of Rs. 39,136/- for the period beginning from 1st July, 1970 and ending on 30th September, 1970 was also credited to the compensation pool of the owners of the Mills. A sum of Rs. 1,16,739/-, the rebate between the period 1st October, 1971 to 30th November 1971, had been realised and credited to the account of the Petitioner Corporation. Some Correspondence took place between the General Manager of the Petitioner Corporation and the Assistant Collector, Central Excise, on the question whether Section 7 of the Act will be applicable to the Petitioner on 5th April, 1973 the Superintendent, Central Excise, informed the General Manager that a sum of Rs. 2,22,420.65 had been debited from the account of the Petitioner as against the outstanding demands. Finally, on 8th September, 1977 the Under Secretary of the Central Board of Excise & Customs, wrote to the General Manager that under Section 7 of the Act it (the Petitioner) was liable to pay the arrears of excise duty.;