TaxTMI 
TaxTMI 
1978 (7) TMI 110
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.... textiles manufacturing business. 3. By an Order No. S. O. 149(A), dated 25th February, 1976 issued in pursuance of the powers conferred by S. 9(1) of the Industries (Development and Regulation) Act, 1951 (hereinafter referred to as the Act), the Central Government specified the classes of goods manufactured or produced wholly or in part of jute in the scheduled industry of Textiles as mentioned in column (2) of the table set out in the said order on which a duty of excise was to be levied and collected as a cess for the purpose of the said Act for a period of one year commencing from 1st March, 1976 at the rates specified in the corresponding entry in column No. 3 of the said table. Column No. (3) of the said table provides that Rs. 3.75 ....
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....r instructions issued by the respondent No. 6 after consulting with the Ministry of Commerce that cess on jute yarn is leviable @Rs. 3.75 per M/T. which is used for captive consumption. It is the case of the petitioner that the cess may be levied under S. 9 of the Act on the articles or goods referred to in the First Schedule to the Act. Item No. 23 of the First Schedule to the Act makes it clear that unless the articles or goods which are manufactured or produced are "textiles", such articles or goods do not come within the said Item No. 23 at all. Jute twine, jute yarn or rope are articles or goods distinct and different from textile. The petitioner being aggrieved by the said notification as well as the demands made by the respondents fo....
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.... declares that it is expedient, in the public interest that the Union should take under its control the industries specified in the First Schedule. In the First Schedule it is stated "any industry engaged in the manufacture or production or any of the articles mentioned under each of the following headings or sub-headings. Textile is Item No. 23". In clause (2) of the said Item, provided it is made wholly or in part of jute, including jute twine and rope. 8. Section 9(1) of the Act lays down "there may be levy and collected as cess for the purposes of this Act on all goods manufactured or produced in such scheduled industry, as may be specified in this behalf by the Central Government by notified order, a duty of excise at such rate as may....
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....y in which it is produced for the manufacture of jute falling under Item No. 22A of the said Schedule from the whole of the duty of excise leviable thereon, provided that such goods are manufactured and consumed by the petitioner within the same factory for captive purpose in the manufacture of jute textiles and jute manufactures. According to Dr. Pal the impugned notification under S. 9 of the Act is contrary to and inconsistent with the above notification dated March 17, 1972 and as such the said notification is invalid and inoperative. 11. Powers have been conferred upon the Central Government under Rule 8 of the Central Excise Rules to grant exemption. In exercise of the powers a notification was issued on March 17, 1972 by which the e....
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.... rate of such cess and the said limit has been expressed in terms of the value of the goods. In the instant case it appears that the excise duty of these goods have been levied on the basis of weight. 14. It is contended by Mr. Roychowdhury, appearing on behalf of the respondents that the rate has been fixed taking into account the average value of the goods per metric tonne in terms of the proviso and the rate that has been fixed does not exceed 2 annas per cent. of the value of the goods. 15. In my opinions the fixation of the rate on the value of the goods on weight is not inconflict with the proviso inasmuch as the proviso cannot control the main part of the section in absence of any such restriction. 16. Lastly, it is contended tha....