KESAR ENTERPRISES LTD Vs. UNION OF INDIA UOI

JUDGEMENT

(1.) M/s. Kesar Sugar Works Ltd. Baheri, district Bareilly, which was subsequently, converted into M/s. Kesar Enterprises filed the present writ petition for quashing of the order of the Assistant Collector, Customs and Central Excise, Bareilly, dated 19-12-1983.

(2.) The brief facts of the case are these. M/s. Kesar Sugar Works Ltd., Baheri, district Bareilly is a factory engaged in manufacturing sugar. It manufactured 40896.03 quintals of sugar during the months of May and June, 1973 and applied for a rebate amounting to Rs. 12,26,880.90 under Notification No. 203/72 dated 28-9-1972 as amended by Notification No. 91/73 dated 1-3-1973. This rebate amount was allowed to be credited in their personal ledger account vide letter dated 7-9-1973.

(3.) Subsequently, it was found as per Notification No. 203/72 dated 28-9-1972 as amended by Notification No. 91/73 dated 1-3-1973 that the rebate was admissible for the excess production during the corresponding period of the preceding year. Since there was no production during the corresponding period of the preceding year, the Superintendent, Central Excise, Pilibhit wrote a letter dated 5-3-1977 calling upon the petitioner to show cause as to why the sum of Rs. 12,26,880.90 be not debited for the wrong credit taken during the period May and 3une, 1973. The notice was issued under Rule 10-A of the Central Excise Rules,