1985 (8) TMI 370 - AT - Central Excise

Summary

Issues Involved:
1. Maintainability of appeals under the Jute Manufactures Cess Rules, 1976.
2. Legislation by incorporation vs. legislation by reference.
3. Applicability of exceptions to legislation by incorporation.
4. Appropriate forum for hearing appeals involving questions of rate of duty or value for assessment.

Detailed Analysis:

1. Maintainability of Appeals under the Jute Manufactures Cess Rules, 1976:
The primary issue is whether appeals against orders under the Jute Manufactures Cess Rules, 1976, are maintainable before the Tribunal. The appellants argued that the Tribunal could not entertain these appeals as it did not exist in 1976 when the rules were framed. They contended that the provisions of the Central Excises and Salt Act, 1944, as they stood in 1976, should apply, and since the Tribunal was established later, it could not be the appellate authority. The department, however, argued that the rules should be interpreted to include amendments made to the Central Excises and Salt Act over time, thus making the Tribunal the appropriate appellate authority.

2. Legislation by Incorporation vs. Legislation by Reference:
The Tribunal had to determine whether Clause 3 of the Jute Manufactures Cess Rules constituted legislation by incorporation or by reference. The distinction is crucial because, under legislation by incorporation, only the provisions of the referenced statute as they existed at the time of incorporation apply. In contrast, legislation by reference includes subsequent amendments to the referenced statute. The Tribunal found that Clause 3 did not specifically incorporate any provision of the Central Excises and Salt Act but referred generally to its provisions. Therefore, it was an instance of legislation by reference, meaning the provisions of the Central Excises and Salt Act, as amended from time to time, would apply.

3. Applicability of Exceptions to Legislation by Incorporation:
Even if the Jute Manufactures Cess Rules were considered legislation by incorporation, the Tribunal noted exceptions where subsequent amendments to the referenced statute would still apply. These exceptions include cases where the statutes are supplemental to each other or in pari materia, or where not applying the amendments would render the subsequent act unworkable. The Tribunal found that the Jute Manufactures Cess Rules and the Central Excises and Salt Act were in pari materia and supplemental to each other. Furthermore, applying only the 1976 provisions would make the appellate process unworkable because the office of the Appellate Collector no longer exists, having been replaced by the Collector (Appeals).

4. Appropriate Forum for Hearing Appeals:
Shri Das argued that even if the appeals were maintainable before the Tribunal, they should be heard by a Regional Bench rather than a Special Bench, as the appeals involved questions of the rate of duty or value for assessment. However, the Tribunal deferred this issue, stating that the current hearing was limited to the question of maintainability.

Conclusion:
The Tribunal concluded that all five appeals were maintainable before it. The Tribunal based its decision on the interpretation that Clause 3 of the Jute Manufactures Cess Rules constituted legislation by reference, thereby incorporating the provisions of the Central Excises and Salt Act as amended over time. Even if considered legislation by incorporation, the exceptions to the rule would apply, making the appeals maintainable. The issue of the appropriate forum for hearing the appeals was left undecided for a later date. The appeals were scheduled to be heard on their merits, with notice to be given to the parties.