Exemption to excess production of sugar during 1-5-1988 to 31-7-1988 falling under Sub-heading No. 1701.31 or 1701.39 - 160/88 - Central Excise - Tariff

Exemption to excess production of sugar during 1-5-1988 to 31-7-1988 falling under Sub-heading No. 1701.31 or 1701.39

Notification No. 160/88-C.E.

Dated 3-5-1988

In exercise of the powers conferred by Sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts sugar produced in a factory during the period commencing on the 1st day of May, 1988 and ending with the 31st day of July, 1988 which is in excess of the average production of the corresponding periods of the three sugar years, namely, 1984-85, 1985-86 and 1986-87, falling under Sub-heading No. 1701.31 or 1701.39 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the said Schedule.

2. In computing the production of sugar during the said periods in respect of a factory, -

(i) the data as furnished in Form R.G. 1, specified in Appendix 1 to the Central Excise Rules, 1944, or in any other records relevant for this purpose as the Collector may specify under Rule 53 or Rule 173G of the said rules, shall be adopted;

(ii) any sugar obtained by refining gur or khandsari sugar or obtained from beet-root shall not be taken into account;

(iii) any sugar obtained by reprocessing of sugar house products left over in process immediately on the expiry of the 30th day of April shall be taken into account; and

(iv) 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 not be taken into account.

3. The exemption under this notification may be availed of on any quantity of sugar cleared for home consumption which is equivalent to the excess production of sugar.

Explanation : In this notification, -

(1)"sugar year" means the period of 12 months commen­cing on the 1st day of October and ending with the 30th day of September next following;

(2) for the purpose of calculating the average production the total production of sugar during the period commencing on the 1st day of May and ending with the 31st day of July in the three sugar years, namely, 1984-85, 1985-86 and 1986-87 shall be divided by three, even if the factory had no production during any such period either for the reason that the factory commenced production after such period or for the reason that the factory was not operational during such period;

(3) Where the average production is nil, the exemption will be available for the entire production of sugar during the period commencing from the 1st day of May, 1988 and ending with the 31st day of July, 1988.