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1993 (4) TMI 66 - SC - Central ExciseValidity of the levy and collection of cess under Section 3 of the Vegetable Oils Cess Act, 1983 for the period commencing 1st March, 1986 and ending with 31st March, 198? Whether the power of exemption conferred by Rule 8 can be carried to the extent of nullifying the very Act itself? Held that:- It is not brought to our notice that the budget proposals contained in the Finance Minister's speech were accepted by the Parliament. The cess having been imposed by a Parliamentary enactment could be rendered inoperative only by a Parliamentary enactment. Such repealing enactment came only in the year 1987 with effect from April 1,1987. Not only that. The repealing Act expressly provided in Section 13 that the cess due before the date of said repeal, but not collected, shall be collected according to law as if the Cess Act is not repealed. This provision amounts to a positive affirmation of the intention of the Parliament to keep the said imposition alive and effective till the date of the repeal of the Cess Act. In the face of the said statutory provisions, no rights can be founded nor can the levy of the cess be said to have been dispensed with by virtue of the alleged decision referred to in the Finance Minister's speech or on account of the letter dated August 11, 1986. The Finance Minister's speech is not law. The Parliament may or may not accept his proposal. Indeed, in this case, it did not accept the said proposal immediately but only a year later. It is only from the date of the repeal that the said levy becomes inoperative. Coming to the argument based upon Rule 8 of the Central Excise Rules read with Section 3(4) of the Cess Act it is totally unacceptable. No notification has been issued under Rule 8(1) by the Central Government - much less was any such notification published in the Gazette. No special order has also been made by the Central Board of Excise and Customs in this behalf under Rule 8(2). The cess imposed under Section 3(1) of the Cess Act, it may be remembered, is a duty of Excise as stated in Section 3 itself. To repeat, the power of exemption cannot be utilised to dispense with the very levy created under Section 3 of the Cess Act or for that matter under Section 3 of the Central Excise Act. Additional contention that the goods concerned therein cannot be called "Vegetable Oil" within the meaning of Section 3(1) of the Cess Act and, therefore, the levy of the cess thereon is incompetent disallowed to be raised in a petition under Article 32 of the Constitution. Appeal dismissed.
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