2005 (4) TMI 548

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....ount of interest on excess levy sugar price ?      2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee's claim for deduction of interest on additional cane price was allowable ?" 2. Brief facts of the case are as follows : Assessee respondent ('assessee') was carrying on the business of sugar. Assessee filed writ petition in this Court and challenged the price of levy sugar as fixed by the Government. In terms of an interim order passed by this Court, assessee was allowed to sell the levy sugar at a price higher than that fixed by the Government on a condition that in the event of final decision of this Court against the assessee, the excess a....

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....sion, the department filed appeal before the Tribunal which, following its earlier orders for the assessment years 1983-84 to 1986-87, has directed the Assessing Officer to examine whether the excess collections have been credited to the Equalisation Fund before the commencement of the Act, in which case the interest would be payable @ 12.5 per cent and if such excess collections were not credited to the Fund account till the commencement of the Act, the interest would be allowable @ 15 per cent. 4. The assessee has further claimed the deduction of Rs. 95,380 on account of the interest claimed to be payable on additional cane price, which was disallowed on the ground that in view of the Hon'ble Supreme Court's order on this issue, the li....