Exemption notification for sugar: percentage slabs were read against average production, not excess production.

An exemption notification for sugar produced in excess of the average production of the corresponding period of the preceding five years was construed as linking the percentage slabs in the operative table to average production, not to excess production. The stated rebate procedure through advance credit in the personal ledger account did not control the interpretation of the notification. On that reading, the claim based on an excess-production basis failed and the revision applications were rejected.

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Issues: Whether, under Sl. No. 2 of the Table appended to Notification No. 146/74 dated 12-10-74, the percentages in sub-serial numbers (a) to (e) were to be applied with reference to average production or only to excess production.

Analysis: The notification granted exemption for sugar produced in excess of the average production of the corresponding period of the preceding five years. Read with the heading of Sl. No. 2, the percentages in sub-serial numbers (a) to (e) were treated as qualifying slabs linked to the average production, not as percentages of excess production. The order also noted that the procedure for granting rebate in advance through credit in the personal ledger account could not control the independent construction of the notification.

Conclusion: The percentages specified in Sl. No. 2 were held to relate to average production, not to excess production, and the revision applications were rejected.

Final Conclusion: The exemption notification was construed in favour of the Revenue, and the claim based on an excess-production basis failed.

Ratio Decidendi: Where an exemption notification expressly ties relief to production in excess of average production, the percentage slabs in the operative table must be read as referable to average production unless the language of the notification clearly indicates otherwise.

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