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TMI Blog1990 (3) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants manufacture oil from Soyabean Oils Seeds by Solvent Extraction Method. Show Cause Notices were issued by Superintendent, Central Excise, Sehore requiring the appellants to show cause as to why the amount mentioned therein be not recovered from them under Section 11A of the Central Excises and Salt Act read with Section 3(IV) of the Vegetable Oil Cess Act, 1983. The appellants filed their reply mainly contending that the proposed recovery of cess was quite illegal, ultra-vires without jurisdiction and/or in excess of jurisdiction. However, the Asstt. Collector while adjudicating the cases passed four different orders rejecting the contention of the appellant holding that they were liable to pay Cess duty right from 1.7.1984. Being ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e levied upto 7.3.1984; and iii) that the Form-A prescribed in Section-4 of the Vegetable Oils Cess Rules, 1984 does not have any column to require information in respect of Oil manufactured by the units like the appellants. Therefore, no cess was leviable. 4. In reply Shri R.M. Ramchandani, learned SDR supported the impugned Order on the reasonings given therein. 5. We have considered the submissions. 6. As regards contention Nos. (i) and (ii), we find that the Vegetable Oil Cess Act, 1983 was enacted for the levy and collection of a Cess on vegetable oils for the development of the oil seeds industry and the vegetable oils industry and the matters connected therewith. Section 3 of the said Act is the charging section providing for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purposes of the National Oil Seeds and Vegetable Oils Development Board. Thus we hold that the constitution of the National Oil Seeds and Vegetable Development Board on a later date does not and cannot relieve the appellants of the liability to cess in respect of the period during which the said Board was not constituted. In this view of the matter we are supported by the ratio of the judgement delivered by the Apex Court in the case of Dhanpat Oil and General Mills v. Union of India, 1985(21) E.L.T. 636 wherein the proceedings taken under the Produce Cess Act, 1966 for the assessment and recovery of the Cess were challenged and it was argued that since no machinery had been provided for the levy of the Cess during the relevant per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its assessment and collection. Now Section 8 requires the occupier to furnish a return every month stating the total amount of produce consumed or brought under processing or extracted in the mill during the preceding month. There is an obligation to file a return of the produce. There is a further obligation to file the return every month. Non-compliance with the latter obligation is sufficient to bring the occupier within the mischief of sub-section (2) of Section 9 of the Act. It empowers the Collector to proceed at once and make an assessment in the manner prescribed by the Rules. But where such non-compliance is due to the circumstance that no Collector was appointed to whom such returns could be furnished, sub-section (2) of Section 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of law which arose before the Hon ble Supreme Court was regarding the validity of the Sugarcane Cess (Validation) Act, 1961. 8. As regards the other only surviving contention that Form-A prescribed under Rule 4 of the Vegetable Oil Cess Rules, 1984 framed under Section 5 and 6 of the Vegetable Oil Cess Act, 1983 does not have any column to require information in respect of the oil manufactured by the appellants who extract oil neither by crushing of the oil seeds by expellers or extracting oil from oil cakes, and therefore no cess was leviable, it may be stated that Rule 4 of the Vegetable Oil Cess Rules, 1984 speaks of delivery of returns and provide that every occupier of mill shall furnish to the Collector for each month a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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