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1969 (8) TMI 33 - SC - Central ExciseValidity and legality of the levy of cess by way of excise duty on the rubber used by manufacturers of chappals under the provisions of the Rubber Act, 1947, (Act XXIV of 1947) challenged Held that:- We find it difficult to endorse the reading of sub-section (1) and sub-section (2) of Section 12 in isolation. Not only the statute but also the section have to be read as a whole and together, and in our judgment whatever be the nature of duty, Parliament would undoubtedly have legislative competence under Entry 97 of List I in the Seventh Schedule read with Article 248 of the Constitution. The substantive provisions of sub-sections (4), (5) and (6) of Section 12 also contemplate assessment being made with regard to the returns to be furnished by owners and manufacturers. Any person aggrieved by an assessment has been given the right of appeal to the District Judge. But as pointed out before, there is no provision either in the statute or in the rules for a demand to be made and a coercive process to be employed in the event of failure to make the payment. That is done by Rule 33D alone from which it would be reasonable to conclude that under the rules it is only the manufacturers who are liable to pay the amount of duty. The rules can, therefore, be said to make a definite provision with regard to the category of persons from whom the collection of the duty is to be made, namely, the manufacturers. Appeal dismissed.
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