Rate of duty disputes fall outside Section 35G reference jurisdiction under the Central Excise framework.

A reference application under Section 35G of the Central Excise Act, 1944 was held not maintainable because the underlying dispute concerned levy of jute cess on jute yarn captively consumed in the manufacture of other jute products. The issue was treated as one relating to the rate of duty under the Jute Cess Act, 1983 and the Cess Rules, and references on such rate-of-duty questions fall outside Section 35G. The operative effect is that disputes characterised as rate-of-duty issues cannot be pursued through a Section 35G reference.

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Issues: Whether the reference application was maintainable under Section 35G of the Central Excise Act, 1944 where the underlying dispute related to levy of jute cess on captive consumption and, therefore, to the rate of duty.

Analysis: The dispute in the earlier order concerned whether jute cess could be levied on jute yarn captively consumed in the manufacture of other jute products under the Jute Cess Act, 1983 read with the Cess Rules. That question was treated as one relating to rate of duty. A reference on such an issue did not fall within the scope of Section 35G of the Central Excise Act, 1944.

Conclusion: The reference application was not maintainable.

Ratio Decidendi: A reference arising from a dispute on the rate of duty is not maintainable under Section 35G of the Central Excise Act, 1944.

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