1994 (11) TMI 134

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.... of the Central Excise Rules, 1944, whereby sugar described in column (2) of the Table to the Notification was exempted from so much of the duty of excise leviable thereon as is specified in the corresponding entry in columns (3) and (4) of the Table. 2. The relevant portion of the Notification reads as below:- "TABLE Sl. No.   Description of sugar Duty of excise Free sale sugar Levy sugar 1.         2.   Sugar produced in a factory during the period commencing on the 1st day of December, 1974 and ending with the 30th day of September, 1975, which is in excess of the average production of the corresponding period of the preceding five sugar years, that is :- &n....

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....tation put by the counsel of the Union of India was accepted by the Court, inter alia, because none of the counsel of the factory owners had disputed the same. The factory owners in these appeals have, however, disputed the stand taken by the Union of India in that case, and the dispute is on the question as to whether the percentage mentioned in sub-clauses (a) to (e) are to be calculated on the excess production or average production of the preceding five sugar years. The earlier Bench held that the percentage would not apply to the excess production, but it would to the average production. This was illustrated in paragraph 19 by taking the hypothetical case where the average production of a factory during preceding five sugar years is 1,....

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...., the rebate would be as mentioned in sub-clause (b) and so on. This may also be illustrated by stating that if the excess production be, say 100 quintals, rebate on first 7.5 quintals (7.5% of 100 quintals) would be as mentioned in sub-clause (a); and on next 10 quintals (10% of 100 quintals) as per sub-clause (b); and so on. 6. As against the above contention, Addl. Solicitor General Shri Tulsi submits that the concept of excess production being intimately related with average production because of what has been stated in the main part of column (2), the view taken in the aforesaid decision is correct and sound. He states that the ascending percentage of rebate was offered to the manufacturers to induce them to produce more and more; a....