Exemption for excess sugar clearances applies irrespective of production period under the notification's terms.

Notification No. 160/88-C.E. allowed exemption for sugar cleared for home consumption to the extent of excess production, and para 3 was read as not imposing any restriction based on the period of production. On that construction, the manufacturer could clear the equivalent excess quantity irrespective of when the sugar was produced, so long as the excess production condition was satisfied. The point was decided in favour of the assessee and against the Revenue, confirming availability of the exemption for such clearances.

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Issues: Whether, under Notification No. 160/88-C.E. dated 03.05.1988, the manufacturer could clear the equivalent excess quantity of sugar for home consumption irrespective of the period of production.

Analysis: The notification entitled the manufacturer to avail exemption on any quantity of sugar cleared for home consumption equivalent to the excess production of sugar. The language of para 3 did not restrict the benefit by reference to the period of production. Since the respondents had produced sugar in excess of the base production and were eligible for clearance of the specified quantity under the notification, the view that the excess quantity could be cleared irrespective of the period of production was .

Conclusion: The issue was decided against the Revenue and in favour of the assessee; the exemption benefit was available for clearing the equivalent excess quantity irrespective of the period of production.

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