1997 (7) TMI 464

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....ing the above oil by solvent extraction methods i.e. from cakes and pallets. It is alleged by the Revenue that initially, they were paying cess. During the period from 1-1-1984 to 30-11-1985 the respondents had incurred a liability to pay cess to the extent of Rs. 24,532.20 under the Vegetable Oil Cess Act. They had paid out of that amount, an amount of Rs. 14,257.65. But they stopped paying cess for sometime. The cess liability during the aforesaid period is to the tune of Rs. 10,274.55. 1.2 It is alleged by the Revenue that by their letter dated 21-10-1986 the respondents were asked to pay the cess as aforesaid. The Revenue again reminded the respondents on 18-3-1981. In the meantime, Vegetable Oil Cess Act with effect from 21-3-1....

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.... the Abolition Act, that is, 21st March, 1987. In my opinion, if such cess was not levied prior to the aforesaid date, by implication this cannot be levied subsequently and collected from a manufacturer. The expression used in Section 13 is 'levy' and not 'leviable'. This would mean that only when a cess was levied, followed by an assessment order, the amount notwithstanding repeal of the Vegetable Oil Cess Act could still be collected and recovered subsequent to the abolition of cess with effect from 21st March, 1987. In the instant case, the order levying the cess itself has been passed after the aforesaid Abolition Act has come into force which, in my opinion, is without authority of law. I, accordingly, hold that the cess on the aforesa....

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....ix months and there can be no allegation of wilful misstatement or suppression of facts and that on Revenue's own admission, they were already paying cess under pressure. 4. We have carefully considered the submissions of both sides. We are of the view that the demand of cess is clearly barred by time inasmuch as no allegation of wilful misstatement or suppression of facts can be alleged against the respondents herein in the aforesaid factual background. Inasmuch as it is the admission of the Revenue itself that the appellants were paying the cess even though under pressure, and they stopped paying the cess during the aforesaid period, it cannot, therefore, be said that the Department was not aware of the non-payment of cess by the ....