1978 (1) TMI 162

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....rtions of this quota of sugar to the District Magistrates of Kanpur and Lucknow. These District Magistrates lifted only 5,044 quintals of levy sugar. The balance 1,296 quintals were left with the petitioner company. On May 7, 1971, the Government of Uttar Pradesh passed an order directing the petitioner to sell the unlifted quantity of levy sugar to nominees of his own choice but at a price not exceeding the price of levy sugar. The order went on to state the excise duty at the rate of 37 1/2% would be leviable on this, 1,296 quintals of levy sugar. The petitioner company in accordance with this order sold 1,296 quintals to its own nominees at the fixed price. 2. Since the averments are not clear, we enquired from the learned Counse....

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....n 1,296 quintals of sugar sold by the petitioner under orders of the State Government. He however contends that the petitioner himself having charged 37 1/2, unlawfully was not entitled to demand refund of this ill-gotten money. 7. The position is that the sale of 1,296 quintals of sugar was liable to excise duty only at the rate of 25%. The petitioner company was not entitled to charge anything more from the persons to whom it sold. Neither the Excise Department was lawfully entitled to charge or demand anything more. But, in fact, the petitioner company charged from the customers 371/2% and had paid the excise duty at the rate of 37 1/2% to the Excise Department. 8. The petitioner company sold the sugar to whole-sellers wh....