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TMI Blog1994 (11) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... n would not defeat the object of granting of rebate, as the same would be ₹ 20 or ₹ 5 per quintal, as the case may be, where the excess is only 7.5%; but on that slab of excess production which is beyond 7.5%, upto 17.5%, the rebate available would be ₹ 40 or ₹ 10, as the case may be; and so on. The quantum of rebate would thus increase with the rate of excess production going higher and higher. So, the manufacturer would have impetus to produce more and more, as higher the percentage of excess, more would be the quantum of rebate. - 488-93 of 1979 - - - Dated:- 11-11-1994 - Kuldip Singh, R.M. Sahai and B.L. Hansaria, JJ. [Judgment per : B.L. Hansaria, J.]. - The short point which needs to be decided by us, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ext 10% Rs. 5/- per quintal Rs. 14/-per quintal (d) on excess production on the next 10% Rs. 60/- per uintal Rs. 18/- per quintal (e) on xcess production beyond 37.5% Rs 82/-per quintal Rs. 22/- per quintal" 3. It is not for the first time that this Court has been called upon to decide the purport of the aforesaid Notification inasmuch as in Collector of Central Excise v. Neoli Sugar Factory, 1993 (65) E.L.T. 145 (SC) = JT 1993 (2) SC 587, a two-judge Bench had expressed its view on the same. On the appeals at hand, however, coming before another two-Judge Bench, it was felt that what was stated in Neoli Sugar Factory's case needed fresh look a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... percentage of 7.5% of which mention has been made in sub-clause (a) would be relatable to the average, which is 1,000 quintals; and so, rebate as per sub-clause (a) will be on 75 quintals (i.e. 7.5% of 1,000 quintals). The rebate mentioned in sub-clause (b) would then be given to 100 quintals which is 10% of the average; and so on. 5. The interpretation put on the Notification explained with the aid of the aforesaid illustration has been questioned by Shri Sanghi, appearing for the appellants. According to the learned counsel, the sub-clauses of the Notification having mentioned about "excess production", the percentage has to be calculated not on the average production but on the excess production, which means that for the factory of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduction, it is this production (beyond the average) which has to be looked into. This reading of the Notification would not defeat the object of granting of rebate, as the same would be Rs. 20 or Rs. 5 per quintal, as the case may be, where the excess is only 7.5%; but on that slab of excess production which is beyond 7.5%, upto 17.5%, the rebate available would be Rs. 40 or Rs. 10, as the case may be; and so on. The quantum of rebate would thus increase with the rate of excess production going higher and higher. So, the manufacturer would have impetus to produce more and more, as higher the percentage of excess, more would be the quantum of rebate. 8. We, therefore, say with respect that the view taken in Neoli Sugar Factory's case is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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