Notification for cess on imported coal: levy fails without the required Central Government notification.

Section 7 of the Coal Mines (Conservation and Development) Act, 1974 permits a customs-duty based cess on imported coal only through a Central Government notification. In the absence of the required notification, the statutory condition for levy and collection was not satisfied, and the cess could not be sustained by reference to the Customs Act or by treating it as independently leviable under Section 6. The levy on imported coal was therefore held not chargeable, with the issue resolved in favour of the assessee.

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Issues: Whether cess in the form of customs duty could be levied on imported coal under Section 7 of the Coal Mines (Conservation and Development) Act, 1974 in the absence of a notification issued by the Central Government.

Analysis: Section 7 authorises the Central Government to impose a customs duty on imported coal, in addition to the normal customs duty, at rates equivalent to the excise duty under Section 6, but only by notification. The absence of such notification meant that the statutory precondition for levy and collection was not satisfied. The duty could not be sustained by resorting to the Customs Act or by treating the levy as arising independently under Section 6 of the Act.

Conclusion: The cess was not leviable on the imported coal in the absence of the required notification, and the issue was decided in favour of the assessee.

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