Allahabad High Court Union Of India (Uoi) And Ors. vs Delhi Cloth And General Mills ... on 1 January, 1800 Equivalent citations: 1978 (2) ELT 177 All Author: H Seth Bench: H Seth, H.N.Seth JUDGMENT H.N. Seth, J. 1. Union of India has filed this appeal against the Judgment of a learned Single Judge of this court dated 27.03.1974 allowing Writ Petition No. 192 of 1972 and quashing a notice of demand dated 18/19th April, 1961 along with the appellate and revisional orders dated 27th of July 1961, 22/27-11-1961 and 7th of January 1962 passed by the Assistant Collector, Central Excise, Collector, Central Excise, and the Union Government respectively. 2. The Petitioner company manufactures sugar and maintains a current account with the Collector of Central Excise, Meerut for the Payment of Excise duty on sugar manufactured by it. In order to provide an incentive for more production of sugar during the year 1959-60, the Central Government, on 25.06.1960 issued a Notification No. G.S.R. 706, under Rule 8(1) of the Central Excise Rules, 1944, providing that a sugar factory would be exempt for payment of excise duty leviable on sugar, beyond Rs. 5.63 per Cwt., on the quality of sugar produced by it during the 1959-60 season i.e. between 1-11-1959 and 31-10-1960, in excess of the average of quantity of sugar produced during the preceding two years. During the year In Question, The Petitioner Produced Approximately 86,661 Mds. Of Sugar In Excess Of Its Average Production Of The Immediately Preceding Two Years. It Claimed That On This Excess Production It Was Liable To Pay Duty Only In Accordance With The Exemption Granted Under Notification G.S.R. No. 706. The Claim Of The Petitioner Was Accepted And Necessary Entries In Its Current Account, Maintained With The Collector Central Excise, Meerut, Were Made. Subsequently it was found that from out of the aforesaid excess quantity of sugar, the petitioner had reprocessed 1,272 Mds. of sugar after 31st December, 1960. According to the respondents, the petitioner was not entitled to the concessional rate of duty as provided in G.S.R. No. 706, in respect of 1,272 Mds. of sugar which it had reprocessed after 31st October, 1960. Accordingly a demand dated 18/19th April, 1961, for an additional amount of Rs. 52,573.90 was raised and the aforesaid amount was debited to the account of the petitioner on 22nd June, 1961. The Petitioner moved an application dated 3rd June, 1961 for the refund of the excess amount realised from it, claiming that the Department was wrong in its view that in respect of 1,272 Mds. of sugar produced by it during the 1959-60 season and Reprocessed After 31-10-1960 It Was Not Entitled To The Benefit Of Notification G.S.R. No. 706. The Asstt. Collector, Central Excise, By His Order Dated 27th July, 1961 Rejected The Prayer Made By The Petitioner. The Petitioner Then Went Up In Appeal And Revision Before The Collector Central Excise Allahabad And The Union Government, Who Rejected The Same By Orders Dated 27th November, 1961 And 14th January, 1963. rohit typing center.