Judgment

Thakker, J.—The present appeal is filed against the action of the respondents of not granting rebate in excise duty in accordance with the Notification No 132/82 issued by the Government of India on April 21, 1982. The case of the appellant is that it is a co-operative society registered under the Maharashtra Co-operative Societies Act, 1960. It is situated at Raghunath Nagar, Taluka Gangapur, District Aurangabad. The appellant is carrying on business of manufacturing sugar falling under Tariff Item No. 1(1) of the First Schedule (then stood) to the Central Excise and Salt Act, 1944, (hereinafter referred to as “the Act”). It is having a valid licence under the Act and the Central Excise Rules, 1944 (hereinafter referred to as “the Rules”). The Directors of the appellant are Indian nationals and citizens. According to the appellant-society, in exercise of the power conferred by sub-rule (i) of Rule 8 of the Rules read with Clause 50(4) of the Finance Bill, 1982, the Central Government granted exemption to sugar from excise duty in certain cases. For that purpose, Notification No. 132/82 was issued on April 21, 1982 as “Incentive Scheme” for excess production of sugar in ord