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Issues:
1. Interpretation of a notification providing concessions in excise duty for sugar production during specific periods. 2. Claim for rebate under the notification for a sugar factory. 3. Validity of a show cause notice issued by the Central Excise Department. Detailed Analysis: 1. The judgment concerns the interpretation of a notification issued by the Central Government to encourage increased sugar production by providing concessions in excise duty. The notification specified different rates of duty exemption based on the excess quantity of sugar produced during specific periods compared to previous years. The notification also included provisions that restricted the exemption eligibility for factories that did not work during the base period or commenced production after a certain date. 2. The petitioner, a sugar factory, produced sugar during a period falling within the notification's scope and claimed a rebate amount. Initially, the claim was allowed by the Assistant Chief Accounts Officer of the Central Excise Department. However, a show cause notice was later issued by the Inspector, Central Excise, questioning the eligibility of the petitioner for the rebate amount based on the production data from a specific period. 3. The Court referred to a previous bench decision in L.H. Sugar Factories v. Union of India, which addressed a similar situation and interpreted the relevant provisions favorably for the petitioner. The Court held that as long as there was production during the base period, even if the production was nil during a specific period, the factory would still be entitled to the benefit of the notification. The Court noted that the decision in L.H. Sugar Factories case was binding and had been followed in another case, Kesar Enterprises Ltd. v. Union of India. Consequently, the Court allowed the writ petition, quashed the show cause notice, and ruled in favor of the petitioner without any order as to costs.
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