SHASHI KANT GUPTA,J. - (1.) THIS writ petition has been filed inter alia for the following reliefs: (a) A writ, order or direction in the nature of mandamus commanding the respondents not to take any coercive action on the basis of show cause notice dated 5.6.1992 (Annexure 13 to this writ petition). (b) A writ, order or direction in the nature of cerfforari quashing the impugned show cause notice dated 5.6.1992 (Annexure 13 to this writ petition). (c) A writ, order or direction in the nature of mandamus commanding the respondents not to launch the prosecution proceedings on the basis of the impugned show cause notice dated 5.6.1992 (Annexure 13 to this writ petition) (d) A writ, order or direction in the nature of mandamus commanding the respondents to withdraw the attachment order dated 6.7.1992 for the recovery which was issued in consequence to the show cause notice dated 5.6.1992 for the recovery of the amount mentioned in the show cause notice.
(2.) THE background facts essentially in a nutshell are as follows: The petitioner is a limited company engaged in manufacture and sale of sugar. From time to time, the Central Government granted incentive rebate with regard to the central excise duties on the excess sugar provided by the sugar factory during the lean periods of low recovery as well as low supply of the cane. The aforesaid incentives had been granted for maximizing the consumption of sugar cane for production of sugar and also for facilitating the payment of remunerative price to the sugar cane growers and also to make it available to the consumer at reasonable price. The aforesaid incentive has also got the purpose of compensating the sugar factories of the country for wear and tear of their plant and machinery on account of excess production as also for the losses incurred on account of low recovery. The amount claimed as rebate relate to the years 1977-78,1980-81,1982-83 and 1987-88.
(3.) THE controversy involved in the matter is whether the petitioner was entitled to take credit of its own of Rs. 90,40,574.50 as basic excise duty on 24.7.1991, Rs. 71,81,624.64 as additional excise duty on 27.7.1991 and Rs. 8,44,493.64 as additional excise duty on 25.10.1991 in its Personal Ledger Account (in short "PLA") and whether the duty of excise can be recovered in terms of Section 11-A of the Act and further penalty can be imposed under Rule 9 (2) and 173-Q of the Central Excise Rules, 1944.;