Biscuit factory; Sugar levy exemption

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New Delhi, Nov 26 (UNI) The Delhi High Court has deferred the arguments in the Parle Biscuit Sugar Manufacturing unit case till tomorrow in which the company has sought exemption of 10 per cent Sugar levy in their Sugar production unit.

A bench comprising Chief Justice M K Sharma and Justice Sanjive Khanna deferred the arguments in the case till tomorrow.

Parle Biscuits Pvt Ltd (Sugar Division) has appealed against the single judge's April 26 order in which the court had rejected the biscuit manufacturers plea for exemption of statutory levy obligation of 10 per cent in their Sugar unit and the operation of regulated release mechanism of the Government be not made applicable to them.

The judge had held that Parle Biscuits is not covered under the 1997 incentive scheme which was solely for Sugar manufacturers who had to supply 10 per cent of their produce for the Public Distribution System (PDS) Mr P P Malhotra, Lawyer for the Ministry of Consumer Affairs and Public Distribution Systems (Sugar Control) told the Court that the incentive scheme 1997 was a specific scheme and was not for public application. This was solely for Sugar factories who had never availed of letters of intent and industrial licences from September, 1990 to March 1994 and had the option to avail of the incentive under 1993 or 1997 scheme subject to the condition that it was implemented by December 31, 1999. Therefore Parle biscuits who is not a sole Sugar manufacturer is not entitled to any benifits under this scheme.

Parle biscuits had contended that they are the leading biscuit manufacturers in India and their Sugar consumption is very high because of this they have set up their own Sugar manufacturing plant in Persendi in Uttar Pradesh.

Their plea is that they intend to use the entire produce of their Sugar for biscuits so they should be exempted from the system of Regulated release mechanism controlled by the Government and also it should not be covered under statutory levy obligation of 10 per cent.


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