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1991 (12) TMI 142 - SUPREME COURTWhether Rule 3 of the Jute Cess Rules is a case of legislation by reference and that in such a case the provisions of the Central Excise Act and the rules made thereunder as they were obtaining on the date of making of Rule 3 continue in the same form, unaffected by subsequent amendments or changes in the Central Excise Act and Rules Held that:- the language of Rule 3 of Jute Cess Rules is altogether different. It indicates a continuing applicability of the provisions of the Central Excise Act and the Rules. What was levied was a ‘duty of excise’ and it was to be levied and collected in accordance with the provisions of the Central Excise Act and the Rules. The effect is as if the words “for the time being in force” were there after the words “the provisions of Central Excises and Salt Act, 1944 (1 of 1944) and the Rules made thereunder” in Rule 3. We are, therefore, of the opinion that the amendment of Rules 9 and 49 made in 1982 (with retrospective effect from 1944) is equally applicable in the matter of levy and collection of cess under the Act. The contentions urged by Shri Ganesan are accordingly rejected. Under the Schedule to the Central Excise Act, jute was taxed with reference to weight. So also was jute yarn; vide Entry 22A and 18D of the Schedule. Even the 1985 Act taxes jute and jute yarn by weight alone. The nature of the cess imposable under Section 9 is really that of duty of Central Excise, as emphasised hereinbefore. Evidently, for that reason the principle obtaining under the Central Excise Act has been adopted by this Act in the matter of levy of cess. We cannot agree with Shri Salve that according to Section 9, the cess can be levied on the basis of value alone and on no other basis. Appeal dismissed.
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