RAVI VEGETABLE OIL Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellant is a manufacturer of fixed vegetable oil falling under heading 1503.10 and 1503.90. They were required to pay Cess under the Vegetable Oil Cess Act 1983. As the Finance Minister on 28.2.86, at the time of introducing the finance bill 1986 -87, had stated in the Lok Sabha, that it has been decided to dispense with the Cess on Cotton, Copra and Vegetable Oils and Ministry of Agriculture will take appropriate action in the matter, they were led to believe that Cess stood abolished with effect from 1.3.86.

(2.) (a) A Show Cause Notice demanding an amount of Rs 32,188.20 towards Cess for the period 1.7.86 to 31.12.86 was issued on 27.1.87. To which a reply was sent on 25.2.87.

(3.) We have heard for appellants'. Advocate Shri D. Ramachandra and Smt. Radha Arun, SDR for the Revenue and after considering the submissions find -