2000 (3) TMI 73 - AT - Central Excise

Summary

Issues: Whether coconut oil extracted from copra is liable to levy of cess under the Vegetable Oil Cess Act, 1983.

Analysis:
1. The appeal questioned whether coconut oil extracted from copra is subject to a levy of cess under the Vegetable Oil Cess Act, 1983. The Collector of Customs and Central Excise (Appeals), Calcutta, initially held that coconut oil is not liable to cess. However, a larger Bench was referred to due to conflicting decisions of the Allahabad High Court and Andhra Pradesh High Court regarding rice bran oil.

2. The analysis delved into the historical context of enactments related to cess on produce obtained in India. The Produce Cess Act, 1966, imposed a duty of excise on specific produce, including coconut, with liability on the mill occupier. Subsequently, the Coconut Development Board Act, 1979, and Copra Cess Act, 1979, were enacted, focusing on coconut and copra. The National Oil Seeds and Vegetable Oils Development Board Act, 1983, defined vegetable oil and excluded coconut from its purview.

3. The argument presented by the Revenue contended that coconut oil falls under the definition of vegetable oil in the National Oil Seeds and Vegetable Oils Development Board Act, 1983, thus making it subject to cess under the Vegetable Oil Cess Act, 1983. However, the analysis highlighted that the specific provisions of the 1979 Acts concerning coconut and copra were not nullified by the general provisions of the 1983 Acts, indicating the exclusion of coconut oil from the latter.

4. The judgment concluded that coconut oil extracted from copra is not liable to cess under the Vegetable Oil Cess Act, 1983, based on the legislative intent and the specific provisions of the relevant Acts. Additionally, the issue of whether rice bran oil qualifies as vegetable oil was deemed irrelevant to the decision in this case, as it did not impact the judgment on coconut oil.

5. Consequently, the appeal by the Revenue was dismissed, affirming that coconut oil extracted from copra falls outside the scope of the Vegetable Oil Cess Act, 1983, Act 30 of 1983. The judgment provided a detailed analysis of the legislative framework and the specific provisions governing the imposition of cess on coconut oil, ultimately clarifying the non-liability of coconut oil to cess under the mentioned Act.