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TMI Blog1990 (8) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(i) of the Central Excise Tariff. They manufactured Vacuum Pan Sugar and a quantity of 63185.61 quintals became eligible for the rebate sanctioned by Notification No. 108/78 dated 28th April, 1978. The appellants filed a rebate claim for Rs. 9,94,486.08 by their letter dated 17th June, 1983. On 2nd April, 1984 they revised their claim for rebate on excess sugar produced to Rs. 13,75,984.86. These claims are in addition to the sugar rebate claimed under Notification No. 108/78 in an amount of Rs. 15,88,486.08. The amount of Rs. 3,81,498.78 represent the additional duty of excise rebate claim in respect of additional duty of excise. 3. The claim of the appellants for rebate of additional excise duty was rejected by the Asstt. Collector. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies of sugar are wholly exempt. He brought to our notice Notification No. 9/58 dated 11th January, 1958, Notification No. 10/84-C.E., dated 1st March, 84 under which Palmyra Sugar and Khandsari Sugar were wholly exempt from payment of basic excise duty. According to him the intention of Notification No. 84/69 is to grant exemption from the payment of additional excise duty in respect of those varieties of sugar namely. Palmyra Sugar and Khandsari Sugar which are wholly exempt from the payment of basic excise duty. He submits that sugar under Notification No. 108/78 is a category of sugar falling under T.I. 1(i) in respect of which the duty is not wholly exempt. Therefore, he submitted that the appellants are not entitled for the rebate of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e emphasis made by Shri Chakraborthy that only those varieties of sugar where the duty of basic excise is wholly exempt and that the sugar in dispute is not wholly exempt, and therefore, not entitled to the benefit of Notification No. 84/69 is without any substance. It is true, Notification No. 108/78 deals with rebate on quantity basis. However, the excess quantity is wholly exempt from payment of duty as duty payable is Rs. 51/- whereas exemption granted is Rs. 54/-. In other words over and above duty payable the appellants were paid by the department Rs. 3/- as a rebate i.e. Rs. 3/- is given as incentive in addition to the exemption of duty. In other words the Notification No. 108/78 wholly exempts basic excise duty payable on sugar fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Excise (Goods of Special Importance) Act, 1957 (58 of 1957)". 9. If the intention of Notification No. 84/69 is to grant exemption only for Palmyra and Khandsari Sugar or other varieties of sugar where the basic excise duty is wholly exempt there is no need to mention separately in these notifications exempting these varieties of sugar from additional excise duty leviable thereon that is under notification Nos. 9 10/58 84. The very fact that these two notifications separately grant exemption in respect of additional excise duty for Khandsari and Palmyra Sugar makes it clear that Notification 84/69 applies only to the sugar covered by T.I.1(i). Therefore, the contention of Shri Chakraborthy for the department is without any substanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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