TMI Blog1974 (8) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... ugar and maintains a current account with the Collector of Central Excise, Meerut for the Payment of Excise duty on sugar manufactured by it. In order to provide an incentive for more production of sugar during the year 1959-60, the Central Government, on 25-6-1960 issued a Notification No. G.S.R. 706, under rule 8(1) of the Central Excise Rules, 1944, providing that a sugar factory would be exempt for payment of excise duty leviable on sugar, beyond ₹ 5.63 per Cwt., on the quality of sugar produced by it during the 1959-60 season i.e. between 1-11-1959 and 31-10-1960, in excess of the average of quantity of sugar produced during the preceding two years. During the year in question, the petitioner produced approximately 86,661 Mds. of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llahabad and the Union Government, who rejected the same by orders dated 27th November, 1961 and 14th January, 1963. Thereafter, the petitioner moved Civil Courts for appropriate relief, but ultimately it was held that Civil Courts had no jurisdiction to deal with the controversy raised by the petitioner. Accordingly, on 12th January, 1972 the Petitioner moved this Court for obtaining appropriate relief under Art. 226 of the Constitution. 3. The learned Single Judge, after repelling the objection raised on behalf of the present appellants that the petitioner deserved to be rejected on the ground of delay and leches, held that the Petitioner was entitled to the benefit of the concessional rate of duty under Notification G.S.R. No. 706, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, 1960, was removed after the close of that season, excise duty thereon became leviable in the subsequent year. Accordingly G.S.R. No. 706, which was intended to give concession in respect of excise duty on sugar in the 1959-60 season was not available in respect of those 12,724 Mds. of sugar, we are unable to accept this submission. Excise duty is leviable on the sugar produced by the manufacturer. It is not a duty on the sale or removal of sugar from the factory. Even if the rules provide for the realisation of duty at the time when sugar is removed from the factory, the even which attracts the liability for duty continues to be the production of sugar. By Notification G.S.R. No. 706 the Union Government had granted an exemption from du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed before the 31st October, 1960, the sugar recovered from such reprocessing shall be eligible for exemption. Aforementioned trade notices merely indicated the interpretation placed by the Collector, Central Excise on Notification No. 705. Such an interpretation will not have the effect of altering the legal effect of the notification issued by the Central Government in exercise of its powers under Rule 8 (1) of the Central Excise Rules. Moreover, there is basic inconsistency in the trade notice, dated 26th June, 1960 issued by the Collector, Central Excise. In paragraph 3 of that notice the Collector mentioned that for purposes of consideration the production of 1957-58 season, the sugar bagged in 1957-58 season minus any sugar recovered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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