Promissory estoppel cannot override a statutory cess levy; oil extracted from oil cakes remained liable to cess.

Promissory estoppel could not defeat an express statutory cess levy: a Finance Minister's budget speech did not bar recovery where the legislation imposed the charge. Cess was also held leviable on cotton seed oil extracted from oil cakes, because oil cakes were treated as residue of plant material and oil produced from them remained oil derived from plant-origin material within the statutory definition. On that construction, the cess demand was upheld and the challenge to liability failed.

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Issues: (i) Whether the department was estopped from recovering cess on cotton seed oil on the basis of the Finance Minister's budget speech; (ii) whether cess was leviable on cotton seed oil extracted from oil cakes as oil bearing material of plant origin.

Issue (i): Whether the department was estopped from recovering cess on cotton seed oil on the basis of the Finance Minister's budget speech.

Analysis: A promise or assurance in a budget speech cannot override an express statutory levy. Promissory estoppel does not operate against the clear provisions of law, and the statutory demand under the cess legislation remained enforceable during the relevant period.

Conclusion: The plea of promissory estoppel failed and the levy was not barred.

Issue (ii): Whether cess was leviable on cotton seed oil extracted from oil cakes as oil bearing material of plant origin.

Analysis: Oil cake was treated as the residue of oil seeds after extraction of most of the oil, and thus as continuing to be of plant origin. On that construction, vegetable oil produced from oil cakes still fell within the statutory definition attracting cess. The reasoning was supported by the interpretation placed on similar statutory language in earlier authority dealing with oil derived from plant material.

Conclusion: Cess was leviable on cotton seed oil extracted from oil cakes under the relevant cess provision.

Final Conclusion: The demand for cess was upheld and the appeal failed on all substantive grounds.

Ratio Decidendi: Promissory estoppel cannot defeat an express statutory levy, and oil extracted from oil cakes remains oil produced from plant-origin material for the purpose of cess liability.

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