1986 (12) TMI 163 - AT - Central Excise

Summary

Issues:
1. Interpretation of Jute Manufactures Cess Rules, 1976 regarding the payment of cess on jute twine utilized for captive consumption.
2. Retrospective effect of the amendments made in Rules 9 and 49 of the Central Excise Rules, 1944.

Analysis:
1. The case involved a dispute over the payment of cess under the Jute Manufactures Cess Rules, 1976 for jute twine utilized by M/s Hastings Mill Ltd. for further manufacture of jute manufactures. The appellants contended that no cess was payable for twine used for captive consumption. The lower authorities upheld the demand for cess, leading to the present appeal. The Tribunal considered the provisions of the Jute Manufactures Cess Rules, 1976 and noted that the cess was payable on goods removed for captive consumption within the factory itself, as per Rules 9 and 49 of the Central Excise Rules. The Tribunal referred to a previous case and held that cess would be payable even for goods used for captive consumption within the factory. The Tribunal agreed with this conclusion, leading to the dismissal of the appeal.

2. The appellant argued that the retrospective effect of the amendments in Rules 9 and 49 of the Central Excise Rules, 1944 was not applicable to the levy and collection of jute cess during the period in question. The appellant contended that the amendments did not impact the cess levy as only the Central Excise Act and Rules applied to the jute cess. However, the Tribunal disagreed with this argument. The Tribunal held that regardless of how the retrospective effect of the amendments was conferred, the amended rules should apply to the period in question. The Tribunal emphasized that the retrospective nature of the amendments did not need to be explicitly written into the Act or rules themselves, as Section 51 of the Finance Act achieved the same result. The Tribunal concluded that the amendments applied to the levy of jute manufactures cess, and therefore, the orders of the lower authorities were upheld, resulting in the dismissal of the appeal.