1997 (7) TMI 343 - AT - Customs

Summary

Issues:
1. Validity of the levy and collection of Cess under the Jute Manufactures Cess Act, 1983.
2. Applicability of machinery provisions for collection of Cess.
3. Time-bar defense under Section 11A of the Central Excise Act, 1944.
4. Provision for levying Cess on export of jute manufactures under Section 3 of the Jute Manufactures Cess Act, 1983.

Analysis:

1. The case involved a show cause notice issued to the appellant company for recovery of Cess on jute manufactures removed for export. The contention was that Cess could not be levied due to the absence of machinery for collection under the Jute Manufactures Cess Act, 1983. The lower appellate authority found the levy valid from the commencement of the Act itself, rejecting the time-bar defense raised by the appellant under Section 11A of the Central Excise Act, 1944.

2. The Tribunal reaffirmed the lower authority's decision, emphasizing that Section 3(1) of the Jute Manufactures Cess Act provides for the levy of Cess on jute manufactures produced in India. The proviso to this section immediately enforces the rates of Cess specified in the Schedule upon the Act's commencement. The Tribunal also noted that machinery provisions for collection are provided under the Central Excises and Salt Act, 1944, as per Section 3(4) of the Jute Manufactures Cess Act, dismissing the appellant's argument on the absence of machinery provisions.

3. The Tribunal further addressed the appellant's argument regarding the provision for levying Cess on export of jute manufactures under Section 3 of the Jute Manufactures Cess Act, 1983. The appellant contended that Section 3 does not cover Cess on exports. However, the Revenue argued that exemptions from Cess on exports require specific provisions under the Central Excises and Salt Act, 1944. The Tribunal sided with the Revenue, rejecting the appellant's argument and dismissing the appeal based on the Revenue's submissions.

In conclusion, the Tribunal upheld the validity of the levy and collection of Cess under the Jute Manufactures Cess Act, 1983, emphasizing the immediate enforceability of Cess rates upon the Act's commencement. The Tribunal also clarified the applicability of machinery provisions for collection and the requirement for specific exemptions for Cess on exports under the relevant provisions of the Central Excise Act and Rules.