Concessional excise duty for season-produced sugar survives later reprocessing; trade notices cannot narrow the notification.

Concessional excise duty under Notification No. G.S.R. 706 attached to sugar produced during the specified 1959-60 season, not to the date of removal from the factory. Sugar that became damaged and was reprocessed after the season retained its character as season-produced sugar, so later reprocessing did not defeat the concession. Trade notices could not override or curtail the exemption granted by the Central Government under the notification. On that basis, the sugar continued to qualify for the concessional rate and the additional duty demand was set aside.

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Issues: Whether sugar produced during the 1959-60 season but reprocessed after the close of that season retained eligibility for the concessional excise duty under Notification No. G.S.R. 706 dated 25-6-1960 issued under rule 8(1) of the Central Excise Rules, 1944.

Analysis: The concession granted by the notification was attached to sugar produced during the specified season, and not to the time when such sugar was removed from the factory. Excise duty on sugar is attracted by production, and the subsequent fact that some quantity became damaged and was reprocessed after the season did not alter its character as sugar produced in the 1959-60 season. The trade notices relied on did not control the legal effect of the notification and could not curtail the exemption granted by the Central Government.

Conclusion: The sugar in question continued to qualify for the concessional rate of duty under Notification No. G.S.R. 706, and the demand for additional duty was rightly quashed. The appeal failed.

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