JUDGMENT

B. P. JEEVAN REDDY, J.:—With a view to induce the Sugar Factories in the country to produce more and also to commence their operations early in the year, the Government of India have been issuing notifications, from time to time, providing for rebate in the, Excise Duty in certain circumstances. These notifications were issued by the Central Government in exercise of the power conferred by Sub-Rule (1) of R. 8 of the Central Excise Rules, 1944. We are concerned in these appeals with four such notifications namely (1) the Notification dated 28-9-72 (applicable to the Sugar Year 1972-73), (2) Notification dated 4-10-73 (applicable to the Sugar Year, 1973-74), (3) Notification dated 12-10-74 (applicable to the Sugar Year 1974-75) and (4) the Notification dated 30-9-76 (applicable to the Sugar Year 1976-77). Sugar Year means the year commencing on and with 1st October and ending with the 30th of September of the following year. The interpretation of these notifications is involved in this batch of appeals.

2. In so far as it is material, the notification dated 28-9-72 and the notification dated 4-10-73 are similar. So are the notifications dated 12-10-74 and 30-9-76. It would be appropriate if we set out the notification dated 28-9-72 in its entirety :

"Notification No. 203/72

dated 28-9-1972

In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts sugar, described in column (2) of the Table below and falling under sub-item (1) of Item No. 1 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from so much of the duty of excise leviable thereon as is specified in the corresponding entry in column (3) of the said Table.

TABLE

S. No Description of sugar Duty of Excise

(1) (2) (3)

1. Sugar produced in a factory during the period commencing from the 1st day of October, 1972 and ending with the 30th day of November, 1972 which is in excess of the quantity of sugar produced during the corresponding period in 1971. Rupees forty per quintal

2. Sugar produced in a factory during the period commencing from the 1st day of December, 1972 and ending with the 30th day of April, 1973 which is in excess of 115% of the quantity of sugar produced during the period commencing from the 1st day of December, 1971 and ending with the 30th day of April, 1972. Rupees twenty per quintal

3. Sugar produced in a factory during the period commencing from the 1st day of May, 1973 and ending with 30th day of June, 1973 which is in excess of the quantity of sugar produced during the corresponding period in 1972. Rupees twenty per quintal

4. Sugar produced in a factory during the period commencing from the 1st day of July, 1973 and ending with the 30th day of September, 1973 which is in excess of the quantity of sugar produced during the corresponding period in 1972. Rupees twenty per quintal

Provided that the exemption under this notification shall not be admissible to a factory-

(a) which did not work during the base period, or

(b) which had only a trial run in the base period, or

(c) which commences production for the first time on or after the 1st day of October, 1972 :

Provided further that in computing the production of sugar during the periods mentioned in column (2) of the said Table,-

(a) the data, as furnished in Form R. G. 1 prescribed in Appendix I to the Central Excise Rules, 1944, or in such other record as the Collector may prescribe under rule 53 or rule 173G of the said rules, shall be adopted

(b) any sugar obtained from reprocessing of sugar-house products left over in process at the end of the base period or earlier shall be taken into account; and

(c) any sugar obtained by refining gur or Khandasari sugar, or any sugar obtained by reprocessing of defective or damaged sugar or brown sugar, if the same has already been included in the quantity of sugar produced, shall not be taken into account-.

Explanation I - A factory shall be deemed to have had a