Law: Evidence Act, (1 of 1872)

Section: 115

JUDGMENT

AJMAL MIAN, J.-(1)(a) The petitioners are the trustees of a charitable endowment for and on behalf of Fauji Foundation. The then President and the Chief Martial Law Administrator under M. L. O. 103 on 3-12-1971 transferred Messrs Rehmani Fauji Sugar Mills Ltd. to the Fauji Foundation. The petitioners are producing and selling sugar. Their production capacity under the excise rules for the relevant period was fixed as 45,600 tons per annum. There was a shortfall in the production in the year 1974-75. Consequently, they applied for abatement under rule 4 of the Excise Duty on Production Capacity (Sugar) Rules, 1972, hereinafter referred to as the Rules. In response thereof, respondent No. 1 through its letter dated 11-6-1975 (Annexure E,/1) addressed to the petitioners informing them that the Board of Revenue had been pleased to consider the grant of abatement of the Excise Duty in respect of the petitioners' sugar mill to the extent of Rs. 1,17,81,850 on the basis of the enclosed calculation and that the aforesaid proposed sanction would be subject to revision after the assessment of the factory was revised by the Collector, Central Excise & Land Customs, Hyderabad in pursuance of the Finance Bill for the year 1975-76 enhancing the Central Excise duty on sugar from 41.50 per cwt. to Rs. 68.72 per cwt. The petitioners were also called upon to take notice and to submit objections if any, to the then proposed action of the Board, in writing by Monday the 6th June, 1975. It was also stated that if the hearing was desired in person or through advocate they might appear before the Member (Central Excise) on 16-6-1975 at 10-00 a.m. It seems that in response to the above letter, the petitioners' Director (Sugar) through his letter dated 16-6-1975 (Annexure E/2) acknowledged respondent No. 1's above letter and noted the contents thereof and stated that they were agreeable to the proposed grant of abatement of Rs. 1,17,18,850 without prejudice to the stand that they might have to adopt as a result of the contemplated revision of the amount of abatement in pursuance of the Finance Bill 1975-76 raising the excise duty from Rs. 41.50 per cwt. to Rs. 68.72 per cwt.