1. In this writ petition the demand made by the Excise authorities to refund a sum of Rs. 3,84,537.23 by a communication dated 14-11-75 (Exhibit 'D') on the ground that there was an excess allowance of rebate in regard to excise duty and further proceedings to enforce the same are challenged.

2. The petitioner is a manufacturer of sugar. By a notification dated 12-10-74, a copy of which has been filed as Exhibit 'A', the Government of India, in exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, granted certain exemption in regard to sugar. The notification is as follows :

NOTIFICATION

CENTRAL EXCISE

G.S.R. 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 columns (3) and (4) of the said Table.

Sl.

Description of Sugar

Duty of Excise

Free Sale Sugar

Levy Sugar

1

2

3

4

1.

Sugar produced in a factory