2026-VIL-184-MAD-CE
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CENTRAL EXCISE High Court Cases

Central Excise - Challenge to the validity of Notification No. 02/2010-CEC, dated 22-6-2010 applying Section 11A for recovery of Clean Environmental Cess - The Notification dated 22.06.2010 issued under Section 83(7) of the Finance Act, 2010 made Section 11A of the Central Excise Act, 1944 applicable for the recovery of Clean Environment Cess (CEC) - Petitioner argued that Section 83(7) only empowers the Central Government to notify provisions relating to the "levy" of excise duty, whereas "assessment and collection" are specifically governed by Section 83(6) and Section 84 through the rule-making power - Whether the expression “levy” occurring in Section 83(7) of the Finance Act, 2010, is wide enough to encompass the processes of assessment and collection/recovery of Cess - HELD - The expression “levy” has a varying connotation depending upon the context in which it is used. While it may be distinct from "collection" when both terms are used together, when used in isolation, "levy" can encompass the entire taxing process including assessment and realization. The term "levy" includes taking necessary steps to collect and determine liability - The Section 83(7) utilizes the legislative device of "incorporation by reference," which allows the legislature to adopt an existing statutory scheme for convenience rather than reproducing it verbatim. The Central Government had the option to either frame exhaustive Rules for collection under Section 84 or borrow the established procedure of the Central Excise Act by notification under Section 83(7). Once it is established that "levy" includes assessment and collection, the choice of the notification route is a valid exercise of statutory power - The subordinate legislation should be read harmoniously with the parent statute and that the inclusion of recovery provisions under the term "levy" does not violate the statutory scheme of the Finance Act, 2010. By issuing the impugned notification under Section 83(7), the Central Government had validly extended the applicability of Section 11A of the Central Excise Act, 1944 to the assessment and recovery of Clean Environment Cess - The impugned notification is intra vires the powers conferred under the Act – The writ petition is dismissed
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