1992 (1) TMI 129

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....2-1978. The appellant was debarred from the benefits of a compounded levy of excise duty for a period of nine months under Rule 92E(iii) for his having violated the conditions in terms of which he was given permission to run a Centrifugal Sugar Crushing Machine at a concessional rate of excise duty. There is no dispute that there was a violation of the conditions subject to which the permission wa....

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....s, has resulted in a demand of Rs. 4.21 lakhs from the appellant. It is submitted that, since the potential revenue at normal rates from one centrifugal machine has been estimated by the Government of India as Rs. 1.5 lakhs, the debarment in financial terms for two machines cannot exceed Rs. 3 lakhs at most. It is therefore, contended, that the effect of the debarment imposed is out of all proport....

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..... Besides, the provision in Rule 92E(iii) also envisages an element of deterrence so that the sugar unit may not repeat its delinquencies or breaches of the conditions on which permission is granted. It is difficult, in the circumstances of the present case, to say, merely because there is some difference in the figures referred to by the Government as a potential loss and the actual loss of reven....