Statutory authority for export quota certification prevails; excise officials cannot reopen certified fulfilment without power.

Where a statute vests the power to fix, modify and certify export quota in a designated authority, another authority cannot independently reopen or challenge a certified fulfilment of that quota without statutory competence. The designated authority's certification that the export obligation was fulfilled was binding, so the Central Excise authorities could not substitute their own view or initiate proceedings under Section 7 of the Sugar Export Promotion Act, 1958 on that basis. The proceedings were held unsustainable and the demand was set aside.

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Issues: Whether the Central Excise authorities could initiate proceedings under Section 7 of the Sugar Export Promotion Act, 1958 on their own and dispute fulfilment of the export quota, when the designated authority had certified that the export obligation was fulfilled.

Analysis: The liability under the Sugar Export Promotion Act turned on the determination of the specified authority empowered under that Act to fix, modify, and verify the export quota. Once that competent authority had certified fulfilment of the quota, the Central Excise authorities could not substitute their own view on whether export had in fact been completed. The power to question compliance or alter the position lay only with the authority designated under the Act, and not with the excise department acting independently.

Conclusion: The proceedings initiated by the Central Excise authorities under Section 7 of the Sugar Export Promotion Act, 1958 were authority of law and unsustainable; the appeal was allowed and the demand was set aside.

Final Conclusion: The decision affirms that compliance with the export quota under the Sugar Export Promotion Act had to be determined by the designated statutory authority, and not by the Central Excise authorities acting on their own.

Ratio Decidendi: Where a statute vests the power to fix, modify, and certify export quota in a designated authority, another authority cannot independently reopen or challenge the certified fulfilment of that quota without statutory competence.

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