(1) THIS is an appeal against the judgment and order of a division bench of the High court at Allahabad dismissing a writ petition filed by the appellants.

(2) THE appellants manufacture sugar at a factory at Laksar in Saharanpur District of the State of Uttar Pradesh. They are liable to pay excise duty and additional and special duties of excise. They made a claim for exemption within the provisions of an Exemption Notification dated 28/4/1978, issued under sub-rule (1 of Rule 8 of the central Excise Rules, 1944, whereby free sugar and levy sugar produced in a sugar factory during the period 1/5/1978 to 30/9/1978 was exempt at the rate therein specified if it was in excess of the average production of the corresponding period of the preceding three sugar years. On 6/10/1978 an order was made by the Chief Accounts Officer, central Excise, Kanpur, which stated that the appellants rebate claim had been pre-audited as admissible under the said Notification and, on the excess production of sugar eligible for rebate of 62,022.76 quintals, rebate was admissible in the sum of Rs. 15,59,252.18.

(3) ON 30/7/1979 the Superintendent, central Excise, Hardwar, issued to th