Pathak, J. - (1.) This civil appeal arises out of a Writ petition filed in the High Court of Punjab and Haryana for the quashing of proceedings taken under the Produce Cess Act, 1966 for the assessment and recovery of the cess.
(2.) The Indian Cotton Cess Act, 1923, the Indian Lac Cess Act, 1930, the Indian Coconut Committee Act, 1944 and the Indian Oilseeds Committee Act, 1946 ceased to have effect. from April 1, 1966 in consequence of which the relative Committees constituted under those Acts stood dissolved and there was no legislative sanction for the continuance of the levy of cess on the produce after March 31, 1966. While the Research Institutes and Stations and other research projects of those Committees now fell within the administrative control of the Indian Council of Agricultural Research, and the work relating to development, marketing and other functions was to be looked after directly by the Ministry of Food and Agriculture, Department of Agriculture, assisted by Development Councils constituted by the Government, and suitable grants were envisaged to the Indian Council of Agricultural Research for the maintenance of Research Institutes and for carrying on the research activities, the Government felt need for larger investments on such projects in order to undertake an effective programme of research and development. Accordingly, it decided to continue the cess on the produce even after the abolition of the Commodity Committee. For the achievement of that objective Parliament enacted the Produce Cess Act, 1966 (shortly referred to as "the Act"). The Produce Cess Rules, 1969 were published on March 28, 1969.
(3.) The Act is a dual enactment. It provides for the levy and collection, as a cess, of customs duty on produce specified in the First Schedule to the Act exported beyond the limits of India. And it provides for the levy and collection, as cess, of exise duty on the produce specified in the Second Schedule. We are concerned in this case with the levy and collection of excise duty.;