TMI Blog1992 (1) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of respective amounts under each consignment. The said demands came to be confirmed by the Asstt. Collector by separate orders. 3. The respondents appealed to the Collector (Appeals), Calcutta who has upheld the contention that the cess is not leviable on imported goods under the Textile Committee Act. He has held as follows - Cess on such goods is leviable under the provisions of the Textile Committee (Amendment) Act, 1963 and Cess Rules, 1975. The Section 5A of the said Act authorises imposition of cess on textile and textile machinery manufactured in India and it is also further laid down that the manufacturer shall pay the committee the amount of duty of excise levied under sub-section (1) within one month from the date on which he receives a notice of demand therefor from the Committee. The mechanism for collection of such cess has been laid down in the rules framed under Section 22 of the said Act under the name and style The Textile Committee (Cess) Rules, 1975 read with Notification No. 55018 (35)/75-Tex (III)/CTEG dt. 1-6-1977 published in part II, Section 3, sub-section (ii) of the Gazette of India Extraordinary dated 1-6-1977 and in that cess is leviable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this legislation is meant for a different purpose. It is a special administrative cess as disclosed by object of the legislation and it goes to a separate fund and hence this cess cannot be equated to addl. excise duty. He contended that it is not one of the cess contemplated as in Section 12 of the Customs Act and not duty of excise as contemplated under Section 3 of the Customs Tariff Act. As this legislation had its own separate machinery for collection of cess, the recovery and demand notice issued by the Excise and Customs authority is not valid. He pointed out that in other legislations like Automobile Cess Act, Beedi Workers Welfare Cess Act, 1976, Jute Cess Act, the Collector of Customs had been specifically empowered to collect the cess as duty of excise however the Act in question did not empower the Excise and Customs officials to recover the cess as Section 5A of this Act had vested the power of collection to the Textile Committee under the Commerce Ministry to levy and collect the cess. He contended that nomenclature of the term Cess did not matter much but it is the pith and substance of the legislation which has to be worked into. 7. He relied on the rulin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or duty leviable on textiles or textile machinery under any other law for the time being in force. (3) The duty of excise levied under sub-section (1) shall be collected by the Committee in accordance with the rules made in this behalf, from every manufacturer of textiles or textile machinery (thereafter in this section and in section 5C and 5D referred to as the manufacturer). (4) The manufacturer shall pay to the Committee the amount of the duty of excise levied under sub-section (1) within one month from the date on which he receives a notice of demand therefor from the Committee". The Notification No. F. 55018 (35) Tex (CTEG) dated 1-6-1977 is also reproduced below - In exercise of the powers conferred by sub-section (1) of section 5A of the Textiles Committee Act, 1963 (41 of 1963) and in supersession of the notification of the Govt. of India in the Ministry of Commerce No. F(ii)/74 Tex(III) dated the 25th February 1975 the Central Govt. hereby fixes with immediate effect, 0.050% adv. as the rate at which the duty of excise shall be levied and collected as a cess for the purposes of the said Act, on all textiles and on all textile machinery manufactured in India, exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor has also not proceeded on this line and decided the matter with an understanding that the demands raised are for cess and not for CV duty under Customs Act. However, in the grounds of appeal, the Revenue have contended that cess is leviable and payable to the Textile Committee. However, they contended that Notification No. 55018/(35)/75Tex (III) CTEG dt. 1-6-1977 fixes cess @ 0.05% ad valorem and declares it to be charged as duty of excise and in terms of Section 3(1) of the Customs Tariff Act, 1975, which empowers for the levy of addl. duty equal to excise duty. The Section 3(1) of the Customs Tariff Act, 1975 is reproduced below - Any article which is imported into India shall in addition, be liable to a duty (hereinafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article, if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article . Hence, the Revenue is contending that cess duty at the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue succeed in these appeals and the same are allowed. We confirm the demands raised in the orders-in-original. 14. [Assent per: N.K. Bajpai, Member (T). -I have studied the order written by learned brother Shri S.L. Peeran and, while agreeing with him, would like to add a few sentences. 15. By notification dated 1st June, 1977, issued under Section 5A of the Textile Committee Act, 1963, the Central Government has fixed the rate at which the duty of excise is to be levied and collected as a cess on all textiles and all textile machinery manufactured in India. It is the case of the Revenue that in terms of Section 3(1) of the Customs Tariff Act, 1975, all imported articles are liable to duty equal to the excise duty leviable on a like article, if produced or manufactured in India, and that this duty is in addition to the customs duty. This being so the excise duty which is leviable as cess under the Textile Committee Act also becomes leviable as additional duty on imported goods. 16. While Dr. Gowri Shankar s contention is that under the Textile Committee Act there is distinctly separate machinery for collection of the cess, there is no provision in that law for its co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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