THE QUANTITY ACTUALLY PROCESSED AND TO REGARD THE REMAINING PART OF THE SECURITY AS FORFEIT .
5 THAT DECISION WAS BASED ON ARTICLE 3*(3 ) OF THE CONTESTED REGULATION, WHICH PROVIDES AS FOLLOWS :
"THE SECURITY SHALL BE RELEASED WHEN :
( A ) THE PERSON ENTITLED TO THE REFUND HAS FURNISHED PROOF TO THE COMPETENT AGENCY THAT AT LEAST 96% OF THE QUANTITY OF THE BASIC PRODUCT PLACED UNDER SUPERVISION HAS BEEN PROCESSED ... .
HOWEVER, WHEN A QUANTITY EQUAL TO LESS THAN 96% OF THE AMOUNT OF THE BASIC PRODUCT HAS BEEN PROCESSED DURING
THIS PERIOD, THE SECURITY SHALL BE RELEASED IN RESPECT OF AN AMOUNT EQUAL TO THAT OF THE PRODUCTION REFUND PAYABLE ON THE QUANTITY OF THE BASIC PRODUCT WHICH HAS BEEN PROCESSED ."
6 SINCE ROQUETTE FRERES DID NOT ACCEPT THAT, BY VIRTUE OF A SHORTFALL OF O.09% FROM THE 96% LAID DOWN IN THE REGULATION, THE PROCESSING OPERATION SHOULD GIVE RISE TO THE FORFEITURE NOT JUST OF THE PART OF THE SECURITY CORRESPONDING TO THAT DIFFERENCE BUT ALSO OF THE PART CORRESPONDING TO THE TOLERANCE OF 4% ( 100% - 96 %) AND THE ADDITIONAL 5%, IN OTHER WORDS, IN TOTAL A LOSS OF 9.09% OF THE REFUND OBTAINED, IT BROUGHT PROCEEDINGS BEFORE THE TRIBUNAL ADMINISTRATIF, LILLE, FOR THE ANNULMENT OF THE BOARD' S DECISION .
7 THE TRIBUNAL ADMINISTRATIF STAYED THE PROCEEDINGS AND ASKED THE COURT :
"( 1 ) IS IT POSSIBLE FOR THE PROVISIONS IN COMMISSION REGULATION ( EEC ) NO*1570/78 OF 4 JULY 1978 THAT LAY DOWN DETAILED RULES FOR THE APPLICATION OF ARTICLE 8*(B ) OF REGULATION ( EEC ) NO*2742/75 OF THE COUNCIL OF 29 OCTOBER 1975 TO PROVIDE ONLY FOR THE ADVANCE PAYMENT OF PRODUCTION REFUNDS BEFORE THE PRODUCT PLACED UNDER SUPERVISION WAS PROCESSED AND FOR THE LODGING OF A SECURITY?
( 2 ) IF SO, IS THAT INTERPRETATION OF THOSE PROVISIONS CORRECT AND NOT CONTRARY TO THE PRINCIPLE THAT A SANCTION MUST BE IN PROPORTION TO THE EVENT WHICH GIVES RISE TO ITS APPLICATION WHERE THE QUANTITY OF THE BASIC PRODUCT PROCESSED IS LESS THAN 96% OF THE QUANTITY
PLACED UNDER SUPERVISION?
( 3 ) IS THE DIFFERENCE BETWEEN THE PROVISIONS CONCERNING RELEASE OF SECURITIES IN REGULATION NO*1570/78 AND THE CORRESPONDING PROVISIONS IN REGULATION NO*1729/78 OF 24 JULY 1978 ON PRODUCTION REFUNDS FOR SUGAR CONTRARY TO THE PRINCIPLE OF EQUALITY OF TREATMENT OF MANUFACTURERS?"
8 REFERENCE IS MADE TO THE REPORT FOR THE HEARING FOR A FULLER ACCOUNT OF THE PROVISIONS OF COMMUNITY LAW IN QUESTION, THE FACTS OF THE CASE AND THE OBSERVATIONS OF THE PARTIES, WHICH ARE MENTIONED OR DISCUSSED HEREINAFTER ONLY IN SO FAR AS IS NECESSARY FOR THE REASONING OF THE COURT .
THE FIRST QUESTION
9 ROQUETTE FRERES CONSIDERS THAT IN PROVIDING, IN REGULATION NO*1570/78, THAT PRODUCTION REFUNDS WOULD BE PAID IN ADVANCE AND THAT IT WAS MANDATORY FOR A SECURITY TO BE LODGED, THE COMMISSION DISREGARDED ONE OF THE ALTERNATIVES WHICH IS IMPLICIT IN ARTICLE 8*(B ) OF REGULATION NO*2742/75