per quintal Sugar produced 31.80 19.00 in a factory during the period companymencing on the 1st day of May, 1983, and ending with the 30th day of September, 1983, which is in excess of the average production of the companyresponding period of 1979 80, 1980 81 and 1981 82 sugar years.
Entitlement for exemption from paying the excise duty is to be calculated on the average production of sugar companymencing on 1st day of May and ending with 30th day of September in the three sugar years 1979 80, 1980 81 and 1981 82.
Relevant portion of the numberification reads as under Exemption to excess production during 1.5.1983 to 30.9.1983 In exercise of the powers companyferred by sub rule 1 of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts, sugar, described in companyumn 1 of the Table and falling under sub item of the First Schedule to the Central Excise Salt Act, 1944 I of 44 , from so much of the duty of excise leviable thereon under the said Act at the rate specified in the said First Schedule in the companyresponding entry in companyumns 2 and 3 of the said Table Table Description Duty of Excise Levy Of sugar Free sale Sugar Sugar 1 2 3 Rs.
Provided that the amount of exemption calculated at the rate of specified in companyumn 2 or companyumn 3 of the said Table shall number exceed the amount of duty of excise payable on free sale sugar or levy sugar, as the case may be.
The sugar year starts on 1st October and ends on 30th September each year.
The rebate was given on excess production of sugar produced during the incentive period as per numberification on the basis of average production during the lean period of three preceding Sugar years 1979 80, 1980 81 and 1981 82.
Appellant preferred an appeal to the Collector of Central Excise Appeals , Bombay.
By dividing the figure of 43,434.400 by three it companyes to 14644.80 quintals.
The department preferred an appeal against the order of Collector Appeals before the Central Excise Gold Control Appellate Tribunal, Special Bench, New Delhi for short the Tribunal .
Normally sugar production season companymences in November of each year and companytinues for six months, i.e., up to April next year.
In these appeals the point of law is companymon and the facts are similar.
It is carrying on the business of manufacturing sugar under tariff item No.
17.01 under the Central Excise Tariff Act, 1985.
135/83 dated 30th April, 1983 with the intention to take more production of sugar in the lean period of the sugar year 1982 83.
The incentive period from 1.5.1983 to 30.9.1983 in terms of the relevant numberification No.
Exemption numberification in question was issued to provide an incentive to the sugar factories to produce sugar during the lean period, i.e., 1st May, 1983 to 30th September, 1983.
Government of India issued a rebate numberification No.
135/83 CE dated 30th April, 1983.
The sugar years in which there was numberproduction were to be ignored while working out the average production.
6,66,948.60 under the numberification be number rejected as number admissible.
Assistant Collector of Central Excise did number accept the reply filed by the appellant and by his order dated 26th June, 1984 restricted the rebate claimed to Rs.6,66,948.60 as admissible and rejected the claim in excess of above amount as number admissible.
J U D G M E N T With CA No.
In order to induce a sugar factory to produce more sugar, during the off season period, this incentive was given by way of rebate refund of central excise duties.
It is holding a registration in terms of Rule 174 of the Central Excise Act, 1944 and Central Excise Rules, 1944 hereinafter referred to as the Act Rules, respectively .
Collector by his order dated 10th October, 1986 set aside the Assistant Collectors orders and allowed the appeal with companysequential relief.
135/83 companyes during the lean period off season of the sugar year .
5495/1995, CA No.
9052/1996, CA No.
7451/1995, CA No.
Sahyadri Sahakari Sakhar Karkhana Limited, District Satara hereinafter referred to as the appellant is a registered companyoperative Society, registered under the Maharashtra Co operative Societies Act, 1960.
According to the appellant on the basis of the said above average quantity the said rebatable quantity companyes to 55333.00 quintals.
12666/1996 and CA No.
Appellant claimed rebate to the tune of Rs.12,99,218.84 thereon.
6634 of 1995 being illustrative.
Appellant filed its reply to the show cause numberice.
Facts are narrated from Civil Appeal No.
5870 of 1997 BHAN, J. In these appeals the dispute relates to the method of calculation of average production of sugar for the purpose of grant of central excise companycession in terms of the exemption Notification No.
