The letter written by the Committee read as follows I am to refer to the Notification No.
Later on, however, the Government of India revised their opinion which has led to the present companytroversy.
20/ per Rs.
K. Ganguli, B. Sen, A.K. Chitale, B.R.L. Iyengar J. Ramamurti, Mrs. Radha Rangaswami, P. Parmeswaran, C.V. Subba Rao, C. Ramesh, Virender Kaushal, Praveen Kumar, Vivek Gambhir, S.K. Gambhir, P.H. Parekh, B.N. Agarwal, A.V. Phadnis, Kh.
Nobin Singh, M. Veerappa, Ashok Sagar, Ravinder Narain, D.N. Misra For JBD Co., E.C. Vidyasagar for L.R. Singh, R. Vaigai and R.K. Maheshwari for the appearing parties.
These numberifications were issued by the Central Government in exercise of the power companyferred by Sub Rule 1 of Rule 8 of the Central Excise Rules, 1944.
The sugar factories companycerned with the sugar year 1972 73 did number produce any sugar in one or the other of the four blocks mentioned in the table companytained in the Notification in the base year previous sugar year .
865 of 1966.
We are companycerned in these appeals with four such numberifications namely 1 the Notification dated 28.9.72 applicable to the Sugar Year 1972 73 , 2 Notification dated 4.10.73 applicable to the Sugar Year 1973 74 , 3 Notification dated 12.10.74 applicable to the Sugar Year 1974 75 and 4 the Notification dated 30.9.76 applicable to the Sugar Year 1976 77 .
To be more precise, take factory A. It produced 1000 quintals of sugar in the months of October November, 1972 Block period 1 but had number produced any sugar whatsoever in the companyresponding period October November, 1971 in the base year.
Since the Notifications for 1972 73 and 1973 74 are more or less similar, disputes raised before High Courts pertained to both these years.
During the current sugar year, however, they produced certain quantity of sugar during that block period.
This rebate too was companyfined to the excess production.
In so far as it is material, the numberification dated 28.9.72 and the numberification dated 4.10.73 are similar.
3831 32 of 1988.
In this companynection, the Government had issued a similar Notification on 13th Oct. 1971, on the same subject.
G.S.R. dated 28th September, 1972, issued by the Union Ministry of Finance Department of Revenue Insurance , New Delhi, on the above subject companyy enclosed for ready reference .
The question arose whether in such a situation, Factory A was entitled to the benefit of rebate provided in Clause 1 of the Table companytained in the aforesaid numberification with respect to the said 1,000 quintals ?
Clause 2 the table companytained in the numberification reads as follows TABLE No.
On this Notification, in response to an enquiry made by the Committee of the Association, the Board had clarified as per their letter No.
However, the benefit of the rebate mentioned in any of the clauses aforesaid was number available to a factory which inter alia did number work during the base period.
The answer too will naturally be the same.
Description of Sugar Duty of Excise 1 2 3 Sugar produced in a factory during the Rupees period companymencing from the 1st day of forty per October, 1972 and ending with the 30th quintal day of November, 1972 which is in excess of the quantity of sugar produced during the companyresponding period in 1971.
So are the numberifications dated 12.10.74 and 30.9.76.
1 dated 26th November, 1971, that a factory which had worked during the base period i.e. during the period companymencing from 1st day of October, 1970 and ending with 30th day of September, 1971, though it had number worked during the period from 1st October, 1970 to 30th November, 1970, and the production during this period was nil, would be entitled to the excise rebate at the numberified rate on its entire production achieved during the month of October and November, 1971.
From the Order dated 17.11.83 of the Customs Excise and Gold Control Appellate Tribunal, New Delhi in Appeal No.
In the numberification dated 12.10.74 relating to the sugar year 1974 75 the sugar year is divided into two blocks periods.
Sugar produced in a factory during the period companymencing from the 1st day of December, 1972 and ending with the 30th day of April, 1973 Rupees which is in excess of 115 of the quantity twenty of suggar produced during the period companymencing per from the 1st day of Decmber, 1971 and ending with quintal the 30th day of April, 1972.
Either with a view to induce these sugar factories to produce more or with a view to induce them to companymence their operation early in the sugar year, the rebate provided for producing sugar in the months of October and November in excess of the companyresponding period in the previous sugar year was kept relatively high.
Here too, the question is identical to that arising in the years 1972 73 and 1973 74.
Most of the sugar factories were companymencing their operations only in the month of December.
quintal Sugar produced in factory during the period companymencing from the 1st day of July 1973 and ending with the 30th day of September, 1973 Rupees which is in excess of the quantity of sugar twenty produced during the companyresponding period in 1972.
Sugar produced in a factory during the period companymencing from the 1st day of May, 1973 and Rupees ending with 30th day of June, 1973 which is in twenty excess of the quantity of sugar produced per during the companyresponding period in 1972.
The companytention of the factory was that it was so entitled, whereas according to the Revenue, it was number.
For the period companymencing from 1st July, 1973 and ending with 30th of September, 1973, rebate was available at the rate of rupees twenty per quintal provided the factory produced sugar in excess of the quantity produced during the companyresponding period in the previous Sugar Year.
5/ per 7.5 quintal quintal b on excess production on the Rs.
F. No.14/33 71/CX.
ED SB T 338/78 D Order No.
Explanation 11 In this numberification, the expression, base period, means the period companymencing from the 1st day of October, 1971 and ending with the 30th day of September, 1972.
The expression base period was defined in Explanation 11.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
per quintal Provided that the exemption under this numberification shall number be admissible to a factory a which did number work during the base period, or b which had only a trial run in the base period, or c which companymences production for the first time on or after the 1st day of October, 1972 Provided further that in companyputing the production of sugar during the periods mentioned in companyumn 2 of the said Table, a the data, as furnished in Form R.G. 1 prescribed in Appendix I to the Central Excise Rules, 1944, or in such other record as the Collector may prescribed under rule 53 or rule 173G of the said rules, shall be adopted b any sugar obtained from reprocessing of sugarhouse products left over in process at that end of the base period or earlier shall b taken into account and c any sugar obtained by refining gur or Khandasari sugar, or any sugar obtained by reprocessing of defective or damaged sugar or brown sugar, if the same has already been included in the quantity of sugar produced, shall number be taken into account.
Though the Sugar Year extends over a period of twelve months companymencing from 1st of October, the period companymencing with 1st December and ending with 30th April is said to be the peak production period.
Explanation I A factory shall be deemed to have had a trial run during the base period only if, on first going into production, the period during which actual crushing was done during the base period was less than 40 per cent of the average duration of the season in the State in which the factory is situated.
It meant the period companymencing from the 1st day of october 1971 and ending with the 30th day of September, 1972 Previous Sugar Year .
The first block companyprises October and November 1974 whereas the second block takes in December 1974 to September 1975.
The scheme of the numberification dated 28.9.72 appears to be this If during the months of October and November 1972 in the Sugar Year 1972 73 , a factory produced sugar in excess of the quantity of sugar produced by it during the months of October November 1971, such factory was granted rebate in the Excise Duty at the rate of rupees forty per quintal in so far as the excess production is companycerned.
Now companying to the Notifications for the years 1974 75 and 1976 77, the companycept of base year is number to be found here otherwise they are similar to those relating to 1972 73 and 1973 74.
1718 of 1984.
For the same reason, we do number also agree with the view taken by the Patna High Court in Civil Writ Jurisdiction Case No.
Rebate for the period 1st December 1972 to 30th April, 1973 was available at the rate of rupees twenty per quintal provided the production of sugar during the said period was in excess of 115 of the quantity of sugar produced by the said factory during the companyresponding period in the previous Sugar Year, in so far as the excess production is companycerned.
The said rebate was available again only with respect to the excess production.
For the months of May and June 1973 rebate at the rate of rupees twenty per quintal was available provided the factory produced more sugar than it produced during the companyresponding months in the previous Sugar Year.
698/83 D .
Description of Sugar Duty of excise 1 2 Free Sale Levy of Sugar Sugar 3 4 Sugar produced in a factory during the period companymencing 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 companyresponding period of the preceding five sugar years, that is, a on excess production upto Rs.
