K.L. Rekhi, Member (T)

1. The facts of this case, in brief, are that the appellants were held entitled for the exemption from duty in terms of Notification No. 108/78-Central Excises, dated 28-4-1978 (commonly known as incentive rebate for higher production of sugar) for the period from 1-5-1978 to 15-8-1978. The rebate was sanctioned to them by the Assistant Collector and credited into their Personal Ledger Account on 20-3-1979. Some 2 1/2 years later, the Department felt that some excess amount had been paid to the appellants. Accordingly, a demand by way of show cause notice was issued to the appellants on 24-10-1981. The Assistant Collector, on adjudication of the matter, dropped the demand on the ground that it was hit by the time-limit of six months laid down in Section 11-A of the Central Excises and Salt Act, 1944. The Collector felt that the Assistant Collector's order was not proper, legal and correct and he, accordingly by issue of his show cause notice dated 6-9-1982, initiated proceedings to revise the Assistant Collector's order under the then Section 35A(2) of the Act. On conclusion of the proceedings, the Collector held that the excess payment made to the appell