'Pursuant to the order, dated 13-12-2001 a policy has been framed by the respondent-department.
A copy of the same has been placed on record. The policy has been sent to the Governor for approval as per rules. The said policy sets out objective criteria on the basis of which penalty may be imposed on sugar mills, which have defaulted in payment of sugarcane chess. The learned Law Officer states that pending approval Government, the petitioner sugar mills shall be dealt with in accordance with the terms of the aforesaid policy. The terms of the policy are reproduced below:- "(a) The previous record of the Sugar Mills on timely payment of Sugarcane Cess will be taken into account.
(b) Regular past payment of sugarcane cess within the stipulated period will be given due consideration while imposing penalty under the rules.
(c) Wilful and persistent default would entail proportionately greater penalty.
(d) Default on growers share would constitute a greater offence as compared to default on mill share.
(e) Unavoidable circumstances established on record by the defaulting mills would be considered.
(f) The magnitude of default would be considered while imposing penalty.
(g) The penalty shall be imposed and/or re-scheduled in such manner that the probability of outcome for any sugar mills on default in terms of penalty shall be uniform.
(h) The re-scheduling decisions will be made on case to case basis in accordance with the parameters set out by the Ministerial Committee.
(i) In addition, the following formula may be kept in view:-- Sr. No.Period in default % age imposition of penalty.
1. Default between 3 months to 6 months (after close of season)15 to 25%
2. Default between 6 months to one year26 to 50 %
3. Default beyond 12 months 51 to 100%
(j) The aforesaid policy provisions can be relaxed by the Cane Commissioner, Punjab, in special circumstances, reasons whereof shall be recorded in writing."
2. In view of the policy framed above and the statement of the learned Law Officer it is ordered that pending approval by the Government all sugar mills in the Punjab shall be dealt with in accordance with the terms of the policy as reproduced in paragraph 1 of this order. It is further ordered that in order to ensure transparency, in all cases where the Cane Commissioner relaxes any provision of the policy in exercise of powers referred to in Clause (j) of paragraph 1 above his decision shall be communicated to the sugar mills in Punjab and to any industry-wise association of sugar mills in Pakistan.
3. In view of the foregoing directions this petition having borne fruit is disposed of.