1975 (4) TMI 37

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....he Managing Director of the South India Sugar and Steels Limited, Madras, which pays every year a large amount by way of excise duty on sugar manufactured and sold by it. 2.  Sugar under Item 1 of the First Schedule to the Act is chargeable to excise duty in terms of Section 3 which is the charging section. It says that there shall be levied and collected in such manner as may be prescribed duties of excise on all excisable goods produced or manufactured in India at the rates set forth in the First Schedule. The rates of course are settled every year by the relative Finance Act as indicated in column 3 of the first item of the First Schedule. The duty is levied and collected on the manufacture of sugar ad valorem and at the rate obt....

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....at such place, at any other place nearest thereto." We are not concerned with the Explanation in the present case. This procedure envisaged by the section controls, as it seems to us, fixation by the Central Government of the tariff values under sub-section (2) That this is so, has not been disputed before us.... The contention for the appellant is that, inasmuch as the tariff values fixed by the Central Government for sugar and notified on September 25, 1970 and May 25, 1971, did not conform to the provision of Section 4, they were invalid. In other words, the appellant says that the tariff values so notified were higher than what was justified by the actual realisation by his factory. 3. Dealing with that averment, the first respond....

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....e actual all India prices as possible this laborious process is being followed by them.". 4. It being clear from the statement in the counter affidavit that the tariff values notified under Section 3(2) of the Central Excises and Salt Act, 1944 were based on the average realisation by sugar factories in the country during a given period and were approximately close to the average actual all India prices. It is pressed upon us for the appellant that such fixation of tariff values for free sugar is contrary to Section 4. 5. We are of opinion that there is force in the appellate's contention Section 4 visualises that the wholesale price for an article of the like kind and quality shall be such wholesale cash price at which such article o....