Sugar exemption percentages must be computed against average production, not excess production, under the notification.

The percentages in sub-serial numbers (a) to (c) of Sl. No. 2 in Notification No. 146/74 were required to be applied with reference to average production, because the exemption was confined to sugar produced in excess of the average production of the corresponding period of the preceding five sugar years. The advance rebate procedure through the Personal Ledger Account did not alter the plain meaning of the notification, which had to be construed independently of the grant mechanism. The revision applications were therefore rejected against the assessee.

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Issues: Whether Sl. No. 2 of the Table to Notification No. 146/74 dated 12-10-1974 required the percentages in sub-serial numbers (a) to (c) to be applied with reference to the average production or to the total excess production.

Analysis: Sl. No. 2 grants exemption only to sugar produced in excess of the average production of the corresponding period of the preceding five sugar years. Reading the sub-serial numbers (a) to (c) with the main entry, the percentages specified therein relate to the average production and not to the excess production. The procedure for granting rebate in advance through the Personal Ledger Account could not alter the plain meaning of the notification, which had to be construed independently of the grant mechanism.

Conclusion: The percentages under sub-serial numbers (a) to (c) are to be computed with reference to average production. The revision applications were therefore rejected, against the assessee.

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