Satish Chandra, J. - (1.) THE petitioner is a company which manufactures and sells sugar. In respect of its production of sugar in the season 1970 -71, the Government of India on March 26, 1971, issued an order under the Essential Commodities Act, 1955, directing the petitioner company to sell 6,340 quintals of sugar to the Government of Uttar Pradesh or their nominees at the levy price fixed by the Uttar Pradesh allotted portions of this quota of sugar to the District Magistrates of Kanpur and Lucknow. These District Magistrates lifted only 5,044 quintals of levy sugar. The balance 1,296 quintals were left with the petitioner company. On May 7, 1971, the Government of Uttar Pradesh passed an order directing the petitioner to sell the unlimited quantity of levy sugar to nominees of his own choice but at a price not exceeding the price of levy sugar. The order went on to state the excise duty at the rate of 37i% would be leviable on this, 1,296 quintals of levy sugar. The petitioner company in accordance with this order sold 1,296 quintals to its own nominees at the fixed price.
(2.) SINCE the averments are not clear, we enquired from the learned counsel and he confirmed that the petitioner company charged excise duty at the rate of 37 1/2% from the persons to whom it sold this quantity of levy sugar. The Excise Department insisted on the petitioner company depositing the entire excise duty charged by it. The petitioner states that it under protest paid Rs. 19,491.84 over and above the lawfully chargeable excise duty at the rate of 25% ad valorem.
(3.) BASTI Sugar Mills filed a writ petition against the demand from the Excise Department for paying the difference between 37½ and 25% ad valorem. A division Bench of this Court by a Judgment dated May 19, 1971, held that the Sugar was levy. It was sold at the fixed price on which only 25% ad valorem excise duty was lawfully chargeable. The Excise Department could not demand payment of any further additional sum. It restrained the department from levying or collecting from the petitioner the additional excise duty in excess of 25%.;