Duty concession carry forward allowed where entitlement existed but certificate was issued late and later adjustment was permitted.

Notification No. 36/76 was interpreted as permitting carry forward of a duty concession to later years' production where the assessee had already become entitled to the benefit but could not use it in the year of production because the required certificate was issued late. The notification was found not to require that the concession be availed only in the exact year of production, and it contained no bar against later adjustment. Since the competent sugar authority had confirmed eligibility and indicated that the additional free-sale sugar would be released from subsequent production, the assessee was allowed to retain and adjust the concession against later production.

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Issues: Whether the benefit of Notification No. 36/76 could be carried over and adjusted against later years' production where the assessee had become eligible for the duty concession but could not avail it in the year of production because the requisite certificate was received belatedly.

Analysis: The notification was construed as not requiring that the concession must necessarily be availed of only in the very year of production, nor did it contain any bar against adjustment of the benefit against later production where the assessee had already become entitled to it. The assessee's entitlement was confirmed by the competent sugar authority, and that authority had also clarified that the additional free sale sugar for the relevant years would be released out of subsequent production. The scheme's reference to carry over of shortfall did not assist the department, because the factual situation here was even stronger: the assessee had produced the sugar, was eligible for the benefit, but was prevented from utilising it only because the certificate was delayed.

Conclusion: The carry over and adjustment of the duty concession against later years' production was permissible, and the assessee was entitled to retain the benefit.

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