1987 (7) TMI 204

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....n of the installed capacity of their factory on 28-2-1976 (i.e. on or after 1-11-1975 as laid down in the notification), in reality, they could not avail themselves of the benefit because of the fact that they did not receive in time the Chief Director's (Directorate of Sugar and Vanaspati) certificate entitling them to avail themselves of the duty concession under the said notification. By the time they received the certificate in or about October, 1977, the entire sugar production of the sugar year 1975-76 had been cleared as free sale/levy sugar in the normal ratio of 35 : 65. On this position being brought to the notice of the Chief Director, he informed the respondents by his letter dated 24-12-1977 that as the factory was entitled to ....

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....carry over of the unutilised quota of a sugar year to the following sugar year. Therefore, the respondents were not entitled to the benefit of duty concession in respect of the excess levy from sugar quota for the year 1975-76 (which they could not utilise owing to late receipt of the Chief Sugar Director's certificate) by adjustment from out of the production of sugar years 1976-77 and 1977-78. On the other hand, Shri Kulkarni drew our attention to the Sugar Directorate's letter dated 24-12-1977 to the respondent. In this letter, the Director noted that the total sugar stocks for the year 1975-76 which had already been released in the usual ratio of 65 : 35 had been sold by the respondents prior to the receipt of the extra free sale sugar ....

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....er to your telegram dated 16-12-1977 on the above subject and observe that the total stocks of sugar for the year 1975-76 which was already released in the usual ratio of 65 : 35 has been sold by you prior to the receipt of extra free sale sugar release accruing due to incentives. It is, however, clarified that the quantity of additional free sale sugar under the incentive scheme for both the years i.e. 1975-76 and 1976-77 will therefore be released to you out of the production of 1976-77 and 1977-78. Yours faithfully, Sd/- A.K. Bose, Director (Project)..." The appellants contention is that the above assurance is not binding on the Central Excise authorities and that there is no provision in Notification No. 36/76 for such ca....