Exemption for exported sugar and duty at removal were referred to the High Court on scope of rebate and exemption rules.

The application under Section 35G sought reference of questions on the scope of exemption under Notification No. 108/78-C.E. and Notification No. 151/78, including whether entitlement depended on the date of removal, the duty actually paid, and whether exported sugar could qualify for benefit. The Tribunal's earlier view was that rebate or exemption could not exceed the duty actually collectible on excess production at the time of removal, and that exported sugar did not in effect suffer duty. On that basis, the same issues were again referred to the High Court for decision.

---

---

Issues: Whether the Tribunal should refer to the High Court the questions arising from the application concerning the scope of exemption under Notification No. 108/78-C.E. and Notification No. 151/78, including the relevance of the date of removal, the amount of duty actually paid, and the availability of benefit for exported sugar.

Analysis: The application was made under Section 35G of the Central Excises and Salt Act, 1944 for reference of questions of law. The Tribunal had earlier dismissed the appeal on the view that the rebate or exemption could not exceed the duty actually collectible on excess production at the time of removal and that no benefit was available for sugar exported out of the country, as such sugar had not in effect suffered duty. The present application sought reference of the same issues to the High Court on the same lines as earlier references arising from connected matters.

Conclusion: The questions were referred to the High Court for decision.

---