Rebate on excess sugar production must cover the full excess quantity, not be limited to average production.

A rebate notification for sugar production was construed to allow rebate on the entire excess production over the average of the preceding five years, not merely up to the average production figure. On that reading, the petitioners were entitled to the claimed rebate and consequential relief, and the impugned orders were quashed. The stated principle is that where a rebate is granted on production in excess of the average, the rebate must be computed on the full excess quantity as expressly provided by the notification.

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Issues: Whether rebate under the notification dated 12 October 1974 for sugar production during the specified period was payable on the entire excess production over the average production of the preceding five years, and whether the petitioners were entitled to the claimed rebate and consequential relief.

Analysis: The prior Division Bench decision had already construed the notification and rejected the Union of India's stand that rebate was confined only to the extent of average production. On a plain reading of the notification, rebate was held to be admissible on the whole of the excess production over the average, as expressly provided by the notification. Since the claim was for the quantity manufactured in excess of the average, the petitioners' entitlement followed from that construction.

Conclusion: The petitioners were entitled to the rebate claimed and to the consequential relief. The impugned orders were quashed and the writ was issued in favour of the petitioners.

Ratio Decidendi: Where a rebate notification provides for rebate on production in excess of the average production, the rebate must be computed on the entire excess quantity and cannot be restricted to the average production figure.

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