9911796707
TMI Blog1985 (7) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... ich came into force from 10th June, 1966. By virtue of the said Sugar Control Order the Government of India regulated the production of sugar in the country and under-clause (4) thereof the Government of India sought to restrict the sale of sugar by producers. By clause (5) the Government of India issued directions regarding production, maintenance of stock, storage and sale of sugar. By a Press Note dated 7th October, 1966 the Government of India introduced a partial decontrol of Sugar. Under this Scheme 60 per cent of the total production of the sugar of each sugar factory was requisitioned by the Government of India to be sold at a controlled price to its nominees and, the remaining 40 per cent of the total production of the sugar was al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1944 and required by the Central Government to be sold under clause (f) of sub-sec. (2) of Section 3 of the Essential Commodities Act, 1955 from so much of the duty of excise and additional duty of excise leviable thereon as in excess of the duty and the additional duty calculated at 20 per cent and 5 per cent respectively. The effect of this notification was that although by the Finance Act, 1970 sugar was subjected to duty of excise at 37 per cent ad valorem the Central Government gave a partial exemption of this excise duty at 25 per cent ad valorem for the sugar which was sold at control rate to the Government. The petitioner though paid 37-1/2 per cent ad valorem excise duty on the free sugar tried to take advantage of the notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (2) of Section 3 of the said Essential Commodities Act, as the price payable for such sugar to the producer thereof. Provided that the element of the duty and the additional duty, if any, added to price aforesaid shall be deducted before calculating the duty and the additional duty on the basis of such price." 6. The wording of the notification reproduced herein above makes it amply clear that the Government had classified sugar into two categories, one required by the Central Government and the other available for free sale in the open market through licensed dealers. It was only the sugar which was available to the Central Government which was partially exempted from excise duty under Rule 8 of the Central Excise Rules, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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