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TMI Blog1977 (6) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1944. But the Government have evolved a scheme generally called "Compounded Levy Scheme". It is contained in Rules, 92A to 93F in Chapter V of the Central Excise Rules, 1944. Under the scheme, duty is payable for each centrifugals, instead of a total production of sugar at full rate mentioned in the X Schedule. Thus the manufacturers of Khandsari Sugar stand to benefit by opting to that scheme and in fact, the petitioners in all these writ petitions did so. 3. It is sufficient for me if I refer to the facts in W. P. No. 723 of 1976. The petitioner started functioning his unit with one centrifugal since the last week of November, 1973. He was paying duty on one centrifugal only every week. Due to the availability of sugarcane, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the petitioner who compelled to pay for the centrifugal for the week commencing from 15-2-1976. He paid under protest. The petitioner made two representations to the Collector of Central Excise on 13-2-1976, and 16-2-1976 in this regard. He says that in addition, he has also made oral representations to him, but the Collector said that the matter was decided by the Government of India on the administrative side and the demands issued are correct in law and he cannot help him. He did not pass any written orders or communicate them to the petitioner. Hence he had filed the petition. 4. It is submitted by Sri Jogayya Sarma, the learned Council for the petitioners in these writ petitions, that according to the rules, the duty is payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese Rules show that when a manufacturer of Khandsari Sugar wants to opt to the Compounded Levy Scheme, he should make an application in the proper form under Rule 92A to the Collector. When the Collector grants such an application, these rules apply but not the other provisions. The application should be made every year so as to cover a period of at least one manufacturing season. Under Rule 92B, the Central Govt. fixes from time to time a rate of duty by a Notification in the Official Gazette. It is fixed having regard to two factors (i) average production in India of Khandsari Sugar per week, for different sizes of centrifugals installed for the manufacture of Khandsari sugar, and (ii) any other relevant factor. The rate of duty is fixed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturer should make an application for leave to remove Khandsari Sugar from his premises during the ensuing season. That application should be made during the calendar month immediately preceding the season. ln that application, he should declare the number and size of centrifugals installed or proposed to be installed together with their height and diameter, the permission so granted for a whole season is subject to the condition of his making weekly payment of duty. lf such application is not made or weekly deposits are not made, the manufacturer is liable to pay duty on his entire production of Khandsari Sugar during the season. 9. The Government of India issued Notification No. 96/75, dated 30-4-1975 under Rule 92B, fixing weekly r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no production, if the centrifugal does not work. Therefore, to my mind, these features show that duty need not be paid for centrifugal that was removed. 11. Further, I do not gather from the rules that he should pay duty even for centrifugals that were removed by him during the season. It is true that under the rules he must pay duty for the period. But that can only be for a centrifugal that worked The rules do not say that even if a centrifugal is removed, he should pay for it for the season or the period. Consequently, I am not able to agree with the learned counsel for the Central Government that the petitioner should pay duty for the whole season for all the centrifugals even if they were removed. I agree with the learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed any orders on their representations and communicated them to the petitioners. If so, no useful purpose would be served by directing the petitioners to make once again a representation to the Collector. Apart from that an appeal can be filed only against an order passed by an authority and not otherwise. When the Collector has not passed any orders and communicated them to the petitioners, I do not see how the petitioners could file an appeal against his order. Consequently, I reject this contention. 14. In the result, I allow these writ petitions and I direct the respondents not to collect duty on the centrifugals not in existence. in the factories of the petitioners in W.P. Nos. 725/76 and 834/76 from the week commencing from 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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