9911796707
TMI Blog1985 (7) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... would be exempted from import duty. Indigeneously manufactured capital goods, components and raw materials would be allowed to be purchased by such units without payment of any central excise duty. The Scheme provided that finished products manufactured in such a unit would be exempted from excise and other central levies. All the units intending to set up industries under the said scheme had to make applications to the secretariat for Industrial approvals,Ministry of Industry, Department of Industrial Development, New Delhi, in the relevant forms. The scheme was given wide publicity and the case of the petitioners is that the petitioners set up a 100% export oriented unit in terms of the resolution dated December 31, 1980 of the Ministry of Commerce, Government of India. The products manufactured by the petitioners have enjoyed the concessions in payment of excise duty since setting up of the unit. The petitioners' case is that on June 1,1983 the Export Commissioner granted to the company a "green card" bearing No. 013 certifying that the unit of the company was a 100% export oriented unit. In the 'green card' it was stated that the unit of the company had been approved under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation to the levy and collection of the duty of excise on jute manufactures under this Act." 5. In the Schedule to the Act, the articles of jute manufacture on which cess is to be imposed have been enumerated. 6. The avowed purpose of the Act is to collect money for the purpose of the Jute Manufactures Development Council Act, 1983 (hereinafter described as the Development Act). That Act and the Jute Act were introduced and passed by the Parliament on the same date, i.e. on 7th September 1983. The Development Act sought to establish a Council for the development of production of jute manufactures by increasing the efficiency and productivity in the jute industry, the financing of activities for such development and for matters connected therewith. 7. The Council that was being set up under the Development Act had to discharge various functions enumerated in Section 7 of that Act for the purpose of increasing the efficiency and productivity in the jute industry; among various objects of the council were: (d) suggesting norms of efficiency for jute industry with a view to eliminating waste, obtaining optimum production, improving quality and reducing costs; (e) promoting s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the 1983 Act is nothing but an additional excise duty. The Act itself recognises that. In any event, the duty which has been described as "cess" is a central levy and, therefore, comes within the wording of the resolution of Government of India dated 31st December 1980 by which it was notified that finished products shall also be exempted from excise and other central levies". 11. The contention of the petitioner is that the cess that has been imposed under the 1983 Act comes squarely. 12. Although this argument was attractively presented, I am unable to uphold this contention for a number of reasons. The immunity from duty that was granted was from excise and other central levies that were in existence at the time when the resolution was published or when the notification granting exemption was issued. The resolution did not have the effect of making the 100% export oriented units exempt from all excise or other central taxation laws for all times to come. The Jute Act of 1983 was passed to provide funds for the working of the Jute Manufactures Development Council. Under Section 4 of the Jute Act, the proceeds of the duty of excise levied by Section 3(1) of the Act had to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trary to the provisions of the Act. 16. In this context, it is also to be noticed that under the Central Excises and Salt Act, 1944 and the Rules framed thereunder, Rule 12 lays down the procedure for granting rebate of duty on goods exported and Rule 13 deals with export under bond of goods on which duty has not been paid. Rule 13(2) provides that the Central Government may, from time to time by notification in the official Gazette, permit export of specified excisable goods under bond without payment of duty subject to certain conditions. Therefore, it is to be seen that the rules by themselves do not grant any exemption. It enables the Central Government to issue notification for the purpose of granting exemption. Section 3(4) of the Jute Act has not made the notifications issued under the Excise Rules applicable to the levy imposed by Section 3 of the Jute Act. 17. There is also another aspect of this matter. Section 3 of the Central Excises and Salt Act, 1944 declares that there shall be levied and collected, in such manner as may prescribe duty of excise on all excisable goods at the rate set forth in the first schedule to that Act. The Jute Act of 1983 provides a Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Weaving Mills Limited v. Union of India (W. P. No. 7225 of 1982 -1983 ECR 199 D) was relied on. In that case, a Division Bench of the Madras High Court held - "It is true that the notification in this case does not say or indicate that basic duty alone is the subject of exemption. Nor does it expressly exclude the additional duty from the purview of the exemption. But the pertinent reference in the notification to the "First Schedule of the Tariff Act" only means and implies a coverage of exemption restricted to the basic ad valorem duty and does not include the countervailing duty." 21. An unreported judgment of the Delhi High Court in Civil Rule No. 2117 of 1982 was also noted by the Kerala High Court in that judgment wherein it was held that merely because auxiliary duty may be connected or related with customs duty. It would not follow that when exemption is granted in respect of payment of any amount of customs duty chargeable under the Customs Tariff Act, 1975, there would automatically be an exemption of auxiliary duty. 22. These cases were decided under the Customs Tariff Act. But the principles underlying these cases must also apply. The Central Excises and Salt Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this proposition, the petitioner relied upon a judgment of the Supreme Court in the case of M/s. Motilal Padampat Sugar Mills Co. Ltd. v. The State of Uttar Pradesh and others. AIR 1979 SC 621. There a company relying on the representation of the Government that its vanaspati factory would be entitled to exemption from sales tax in respect of sales of vanaspati effected in Uttar Pradesh for a period of three years from the date of commencement of production, borrowed monies, purchased plant and machinery and set up a factory at Kanpur. It was held by the Supreme Court that the Government was bound to carry out its representation and exempt the appellant from sales tax in respect of sales of vanaspati effected by it in Uttar Pradesh for a period of three years from the date of commencement of productions. The Government was bound on the principle of promissory estoppel to make good the representation made by it. 25. But the principle laid down in that case cannot be applied to the facts of the instant case. The goods exported by the petitioner has been exempted from the excise duty and other central levies. The facts of this case are entirely different. The Government has not so ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
