Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2014 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 680 - HC - Central ExciseValidity of Section 3 and 3A - Challenge to vires of Rule 9 of the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 - Held that:- Section 3 and Section 3A are placed in Chapter III dealing with levy and collection of duty. Section 3 is about duties specified in the First & Second Schedule to the Central Excise Tariff Act, 1985 to be levied. Proviso to its sub-section 1 and its sub-section (1A) specifies that a duty of excise would be levied on all excisable goods which are produced or manufactured in India Section 3(1) itself permits mode & manner of levy as also collection to be decided by or through subordinate legislation when it states that “There shall be levied & collected in such manner as may be prescribed”. This Section 3A therefore severs the so called nexus of levy, which is essential according to petitioner, with quantity actually produced and subjects “deemed annual production” to levy. Even Rule 5 of 2008 Rules is about the quantity deemed to be produced. Recovery of duty in advance in this situation on deemed production in systematic manner does not offend & has no connection with Section 3. Legislature found it in public interest to subject notified goods to a different treatment & there is no challenge to this treatment or classification in S. 3-A. If any challenge to the legislative wisdom is possible & open, it is also not an issue presented before us. We are not called upon to consider validity of 2008 Rules in the light of S. 3A or then validity of S. 3A in any way, in above perspective under Central Excise Act, 1944. - Decided against assessee.
|