INDIA SUGARS AND REFINERIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this writ petition the demand made by the Excise authorities to refund a sum of Rs. 3,84,537.23 by a communication dated 14 -11 -75 (Exhibit 'D') on the ground that there was an excess allowance of rebate in regard to excise duty and further proceedings to enforce the same are challenged.

(2.) The petitioner is a manufacturer of sugar. By a notification dated 12 -10 -74, a copy of which has been filed as Exhibit 'A', the Government of India, in exercise of the powers conferred by sub -rule (1) of rule 8 of the Central Excise Rules, 1944, granted certain exemption in regard to sugar. The notification is as follows :

(3.) THE contention on behalf of the petitioner is that the notification is clear that the excess production during the relevant year over the average production of the previous five years was entitled to the rebate and the notification prescribed slabs in accordance with which rebate had to be allowed and accordingly rebate at particular rates on 7.5 per cent of this excess and the next three successive 10 per cent of such excess and the balance over and above 37.5 per cent has been calculated and till now, this calculation has not been found to be in any way inaccurate. The contention on behalf of the department, as it appears from the counter affidavit that has been filed, is that the petitioner was entitled to rebate on several percentage specified in the notification on the average production for the previous five years and not on the basis of the percentage of the excess production over the average of the previous years. The relevant portion in the objection statement is as follows : -