BELAPUR SUGAR AND ALLIED INDUSTRIES LTD. versus COLLECTOR OF CENTRAL EXCISE, AURANGABAD

Citation: [1999] 2 S.C.R. 635 · Decided: 13-04-1999 · Supreme Court of India · Bench: AJAY PRAKASH MISRA, R.P. SETHI · Disposal: Appeal(s) allowed

Judgment (excerpt)

BELAPUR SUGAR AND ALLIED INDUSTRIES LTD. 
A 
v. 
COLLECTOR OF CENTRAL EXCISE, AURANGABAD 
APRIL 13, 1999 
[A.P. MISRA AND R.P. SETHI, JJ.] 
B 
Central Excise Rules 1944 : Rule 8(1) and 9A 
Excise duty-Notification No. 132of1982 dated 21.4.1982-Amendment 
of-Subsequent notification No. 193 of 1982 dated 11.6.1982-Effect of C 
Amendment-Applicability of Notifications-Sugar-Rebate in excise duty-
Question whether the excess production of sugar by appellant during the 
designated period commencing on !st May, 1982 but before the date of issue 
of Amending Notification No. 193 was entitled to duty reduction in terms of 
Notification 132 as substituted by Notification 193-Held-Appellant is 
entitled for the rebate under the substituted Notification No. 193182 dated D 
I 1th .June, 1982 even for a period of 1st May till 11th June, 1982-Appellant 's 
case held covered by substituted para 4 of the Notification-If assessee is 
otherwise entitled for exemption he cannot be denied merely on the ground 
that he has already paid the duty for the period in question-Even if duty 
is paid under ignorance of law or otherwise, if by subsequent legislation or E 
valid Notifications the obligation to pay the duty is withdrawn, it cannot be 
refused since it has already been paid. 
Statutory interpretation-Taxing statute-Notification-Unless there 
is anything to the contrary in the Act, Rules or Notification, if there be two 
possible interpretation, it is that interpretation which subserve the object F 
and purpose should be accepted. 
Collector of Central Excise and Ors. v. Neoli Sugar Factory and Ors., 
(1993] Suppl. 3 SCC 69; Soutu Bihar Sugar Mil!s Ltd. etc. v. Union of India 
& Ors., (1968] 3 SCR 21 and U.O.I. v. Wood Papers Ltd., (1990) 47 ELT 500 
S.C., referred to. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 122of1986. 
G 
From the Judgment and Order dated 29.10.85 of the Customs, Excise and 
Gold (Control) Appellate Tribunal, New Delhi in A. No. ED(SB) No. 370 of 
1985-D. 
H 
635 
·-
636 
SUPREME COURT REPORTS 
(1999] 2 S.C.R. 
A 
Dushyant Dave, Shri Narain and Sandeep Narain for the Appellant. 
B 
Anoop Chaudhary, Hemant Sharma and P. Parmeswaran for the 
Respondent. 
The following Order of the Court was delivered : 
The short question raised in this appeal is, whether the excess 
production sugar by the appellant during the designated period commencing 
on 1st May, 1982 but before the date of issue of the amending Notification 
193 of 1 n2 dated 11th June, 1982 was entitled to duty reduction in terms of 
the Notification 132 of 1982 dated 21st April, 1982 as substituted by 
C Notification 193. 
It seenis after the said Notification No.132 subsequent amendment was 
brought by the Notification No.193 under which the limitation in granting 
exemption only to those who had excess production for three consecutive 
D preceding years were eliminated by substituting even that those who had nil 
production in the preceding three years are also entitled for such exemption. 
In order to appreciate the issue it is necessary to reproduce relevant portion 
of the Notification No.132of1982 dated 21st April, 1982. 
This Notification is issued under sub-rule (1) of Rule 8 of the Central 
E Excise Rules 1944 as it stood then read with sub-section (4) of clause 50 of 
the Finance Bill 1982 under the Provisional Collection of Taxes Act, 1981. 
"Table (/) Description of Sugar : Sugar produced in a factory during 
the period commencing on Jhe 1st day of May, 1982 and ending with the 30th 
day of September, 1982, which is in excess of the average production of the 
F corresponding period of the preceding three sugar years." 
Under this Notification as aforesaid the exemption is only to such sugar 
producirig factory which during the period commencing from 1st May, 1982 
and ending on 30th day of September, 1982 produces sugar in excess over 
the average production of the corresponding three preceding sugar years. 
G Para 4 of the Notification exclude from this benefit to such sugar factories 
whose production during the period mentioned in column 1 of the said table 
in the preceding three years was nil. Relevant portion of para 4 is quoted 
hereunder : 
"4. - Nothing contained in this Notification shall apply to a sugar 
H 
factory where production during the period mentioned in column I of 
BELAPUR SUGAR AND ALLIED INDUSTRIES LTD."· C.C.E. 
637 
the said table, during all preceding three sugar years was nil." 
A 
As this Notification stood in 

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