KRISHNA RUBBER WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an appeal by the petitioners against the order dated September 6/7,1965 of Kantawala J. dismissing their petition under Article 226 of the Constitution of India challenging the validity of a levy under Section 12 of the Rubber Act, 1947, as amended in 1960 and the Rules framed thereunder and recoveries made and demand notice issued in respect of such levies. This levy was also challenged in other petitions filed by other persons on whom such levy was made. By a judgment dated September 6/7, 1965 in Misc. Petition No. 119 of 1964 (G.B. Parwar v. Union of India) Kantawala J. upheld the validity of such levies. Following the said judgment he dismissed the petition, from which the present appeal arises.

(2.) THE petitioners are a firm manufacturing rubber balloons at Chandansar near Bombay. They are manufacturers by whom rubber is used. From April 1, 1961 the Union of India have levied a duty of excise on all rubber produced in India under Section 12(1) of the Rubber Act, 1947 (hereinafter referred to as 'the Rubber Act') at the rate of 80 paise per kg. Consequently certain duties have been levied on and recovered from the petitioners and certain demand notices have also been issued against them. The petitioners contend that Section 12 of the Rubber Act and Rules 33(e) and (f) and Rules 33B, C and D of Rules framed under the Rubber Act and consequently the levies, recoveries and demand notices thereunder are illegal, invalid, inoperative, ultra vires and unconstitutional on several grounds set out by them in the petition including alleged contravention of Articles 14, 19 and 81 of the Constitution of India.

(3.) FOR the appreciation of these contentions a reference to Section 12(1), (2) and (1) and to some other provisions of the Rubber Act is necessary. 12. (1) Imposition of new rubber cess. With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be levied as a cess for tile purposes of this Act, a duty of excise on all rubber produced in India at such rate, not exceeding fifty naye paise per kilogram of rubber so produced, as the Central Government may fix. (2) The duty of excise levied under Sub -section (1) shall be collected by the Board in accordance with rules made in this behalf either from the owner of the estate on which the rubber is produced or from the manufacturer by whom such rubber is used... (7) The proceeds of the duty of excise collected under this section reduced by the cost of collection as determined by the Central Government shall first be credited to the Consolidated Fund of India and then be paid by the Central Government to the Board for being utilised for the purposes of this Act, if Parliament by appropriation made by law in this behalf so provides. 4. The preamble to the Hubber Act provides 'Whereas it is expedient to provide for the development (under the control of the Union) of the rubber industry'. Section 8(e) defines 'manufacturer' as any person engaged in the manufacture of any article in the making of which rubber is used. Section 8(h) provides that 'rubber' does not include rubber contained in any manufactured article. Section 4 provides for the constitution of a Rubber Board. Section 8 provides that it shall be the duty of the Rubber Board to promote by such measures, as it thinks fit, the development of the rubber industry, more particularly by undertaking, assisting or encouraging scientific, technological and economic research, training students in improved methods of rubber cultivation, supplying technical advice to rubber growers, improving marketing of rubber, collection of statistics, in improvement of the conditions of labour, advising Government on matters relating to the development of rubber industry including import and export of rubber and participation in international conferences and reporting to the Government on the development of rubber industry. Section 9 -A(2) makes provisions for making cash grants for the development of rubber estates and Section 9 -B (2), for rehabilitation of small growers. Section 19 provides for levy of fees for the issue and renewal of licences to dealers in and planters of rubber.