Retrospective operation of cess rules denied: captively consumed jute products remained subject to jute cess before 1 October 1984.

Jute cess remained payable on jute products consumed captively for the period from 1 May 1984 to 30 September 1984 because Rule 3 of the Jute Manufactures Cess Rules, 1984 was operative only from 1 October 1984 and was not treated as retrospective. The commentary states that earlier Tribunal decisions had already rejected the assessee's contention, and the issue was regarded as no longer open. It further notes that a Board letter could not override the statutory rule or create retrospective relief in the absence of express legislative intent.

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Issues: Whether jute cess was payable on jute products consumed captively during the period from 1-5-1984 to 30-9-1984, and whether Rule 3 of the Jute Manufactures Cess Rules, 1984 operated retrospectively from the date the cess levy commenced.

Analysis: The levy under the Jute Manufactures Cess Act commenced on 1-5-1984, while the rules were made operative only from 1-10-1984. Rule 3 granting relief for captively consumed jute products was not held to have retrospective operation. The issue had already been decided against the assessee in earlier Tribunal decisions and was treated as no longer res integra. The Board's letter could not override the statutory rule or confer retrospective effect on it.

Conclusion: The benefit of Rule 3 was not available for the period 1-5-1984 to 30-9-1984, and jute cess remained payable on the captively consumed goods.

Final Conclusion: The appeal failed and the duty demand was sustained.

Ratio Decidendi: A statutory rule takes effect only from the date on which it is made operative, and administrative correspondence cannot give it retrospective operation in the absence of express legislative intent.

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