Judgment S.S.Sandhawalia, J. 1. Whether the cess leviable under Section 9 of the Industries (Development and Regulation) Act, 1951 can be lawfully imposed on jute twine and jute yarn in the process of manufacture, is the significant question necessitating this reference to the Full Beach. Equally at issue is the correctness of the views expressed by the Division Bench in Rameshwar Jute Mills Ltd. V/s. Inspector Customs & Central Excise-1981 E.L.T. 30 1980 Pat. L.J.R. 403. 2. In view of the recent amendment of Rules 9 and 49 of the Central Excise Rules, 1944 (hereinafter to be referred to as the Rules), which have been accorded retrospectivity with effect from 1944 by the express mandate of Section 51 of the Finance Act, 1982 , it becomes somewhat unnecessary to delve into the facts in any depth. It suffices to mention that the petitioner Katihar Jute Mills Ltd.-are manufacturing diverse jute products including sacking, hessian, jute twine and jute yarn in their factory premises, and are duly licensed to do so under the Rules. The jute industry being one specified in Schedule to the Act, a cess can be levied under Section 9(1) of the said Act read with the Central Excises and Salt Act, 1944 and the Rules framed thereunder. The gravamen of the petitioners case is that jute twine and yarn in a continuous process of manufacture in their mill directly go to the weaving section for weaving and hemming and their ultimate conversion into hessian or sacking goods. Therefore, jute twine and yarn are not manufactured or marketable products nor are they removed from the premises of the factory as such, with the significant result that they are not liable to any excise duty or cess thereon. Nevertheless the respondent excise authority had created demands against the petitioner on the basis of quantity of jute twine and yarn consumed within the factory in the manufacture of jute goods with effect from April, 1976. Aggrieved thereby, the petitioner had preferred this writ petition way back on the 4th of the January, 1980 to challenge such levy. Basic reliance on their part was on (Supra). 3. This writ petition was originally heard by a Division Bench but before the reserved judgment could be rendered, a pointed challenge was laid to the ratio of Rameshwar Jute Mills Ltd.s case (1981 Tax. Basic reliance on their part was on (Supra). 3. This writ petition was originally heard by a Division Bench but before the reserved judgment could be rendered, a pointed challenge was laid to the ratio of Rameshwar Jute Mills Ltd.s case (1981 Tax. L.R. N.O.C. 11) (Pat.) on behalf of the respondents on the basis of J.K. Cotton Spinning & Weaving Mills V/s. Union of India [Civil Writ No. 1858 of 1981 decided on 11th January, 1982 by the Delhi High Court-1983 E.L.T. 239 (Del.)]. Noticing the conflict of precedent and the significance of the issue involved, the matter was referred to a larger Bench for an authoritative decision. 4. The claim of the petitioner, however, has now to be viewed in the context of the radical changes in the law brought about subsequent to the filing of the writ petition. Sec.30 of the Act authorises the Central Government to make rules for carrying out the purposes of the Act and in pursuance of that power the Jute Manufactures Cess Rules, 1976 have been promulgated. Rule 3 of the said Rules in terms provides for the application of the Central Excises and Salt Act as also the Rules framed thereunder, in relation to the levy and collection of the cess on jute manufacturers. It is not in dispute that the Finance Act of 1982 introduced a redical amendment in Rules 9 and 49 of the Central Excise Rules, 1944. What is even more significant is that by virtue of Sec. 51 of the Finance Act, 1982 retrospectivity has been given to these amendments with effect from 1944. It is thus common ground that the amendment of Rules 9 and 49 of the Central Excise Rules, 1944 and the express retrospectivity given to them have brought about a, fundamental change in the relevant provisions of the law, whereby the removal of excisable goods is complete even if they are captively consumed in the continuous process of manufacture. Faced with this fait accompli, a feeble attempt has now been made on behalf of the petitioner to challenge the validity of the amendments in Rules 9 and 49 aforesaid and equally the retrospectivity accorded to them by the Finance Act. 5. Faced with this fait accompli, a feeble attempt has now been made on behalf of the petitioner to challenge the validity of the amendments in Rules 9 and 49 aforesaid and equally the retrospectivity accorded to them by the Finance Act. 5. It seems manifest from the above that the whole case has suffered a metamorphosis because of the subsequent structural changes in the relevant rules and the long retrospectivity given to them by the Finance Act. It is well known that ticklish difficulties were posed in the levy of excise duty on products in a continuous process of manufacture in a mill or a factory. The concept of removal from the precincts of the factory which in certain cases was the taxing event attracting the levy of excise duty was equally a matter not free from difficulty. Conflicting views have been taken by the various High Courts with regard to what would amount to removal under the Central Excises and Salt Act and the Central Excise Rules. To overcome these difficulties or, to use a known expression of the law, in order to remedy this evil, the framers introduced a radical change in the provisions of Rules 9 and 49 of the Excise Rules. In order to notice the qualitative change wrought therein, it seems apt to juxtapose the relevant parts of the amended rules against the existing ones: Before amendment aforesaid After amendment aforesaid "9. (1) No excisable goods shall 9. (1) No excisable goods shall be removed from any place where they be removed from any place where are produced, cured or manufactured they are produced, cured or manu factured or any premises appurtenant thereto, or any premises appurte nant which may be specified by the Collector thereto, which may be specified in this behalf, whether for consumption, by the Collector in this behalf. export, or manufacture of any whether for consumption, export, or other commodity in or outside such manufacture of any other commo dity place until the excise duty leviable in or outside such place, until thereon has been paid at such place the excise duty leviable thereon has and in such manner as is prescribed been paid at such place and in such in these Rules or as the Collector may manner as is prescribed in these require, and except on presentation Rules or as the Collector may of an application in the proper form require, and except on presentation and on obtaining the permission of of an application in the proper form the proper officer on the form. and on obtaining the permission of the proper officer on the form. (2) If any excisable goods are (2) If any excisable goods are in contravention of Sub-rule (1), in contravention of sub-rule (1), deposited in or removed from, any deposited in or removed from, any place specified therein, the producer place specified therein, the producer or manufacturer thereof shall pay the or manufacturer thereof shall pay duty leviable on such goods upon the duty leviable on such goods written demand made within the upon written demand made within period/specified in Rule 10 by the the period specified in Rule 10 by proper officer, whether such demand the proper officer, whether such is delivered personally to him or is left demand is delivered personally to at his dwelling house, and shall also him or is left at his dwelling house, be liable to a penalty which may and shall also be liable to a penalty extend to two thousand rupees and which may extend to two thousand such goods shall be liable to rupees, and such goods shall be confiscation. liable to confiscation. Explanation:- For the purposes of this rule, excisable goods pro duced, cured or manufactured in any place and consumed or utilised, (i) as such or after subjection to any process or processes; or (ii) for the manufacture of any other commodity, whether in a continuous process or otherwise, in such place or any premises appurtenant thereto, specified by the Collector, under sub- rule (1) shall be deemed to have been removed from such place or premises immediately before such consumption or utilisation. 49. (1) Payment of duty shall 49. 49. (1) Payment of duty shall 49. (1) Payment of duty shall not be required in respect of excisable not be required in respect of exci able goods made in a factory until they are goods made in a factory until about to be issued out of the place or they are about to be issued out of premises specified under Rule 9 or are the place or premises specified under about to be removed from storeroom Rule 9 or are about to be removed or other place of storage approved by from a storeroom or other place of the Collector under Rule 47, storage approved by the Collector under Rule 47. "(3) Notwithstanding anything (3) Notwithstanding anything contained in Sub-rule (1), the Central contained in Sub-rule (1), the Central Government may, under circumstances Government may, under circums tances of exceptional nature, allow, by of exceptional nature, allow, notification in Official Gazette, any by notification in Official Gazette, excisable goods to be removed from any excisable goods to be removed the factory in which they are produced from the factory in which they are without payment of duty leviable produced without payment of or thereon subject to such conditions only on part payment of duty and limitations (including payment of leviable thereon subject to such con ditions interest on the balance amount of and limitations (including duty) as may, from time to time, be payment of interest on the balance specified by the Central Government. amount of duty) as may, from time The manufacturer of such excisable to time, be specified by the Central goods shall execute a bond in the Government. The manufacturer of proper form with such surety or security such excisable goods shall execute a as the Collector may approve. bond in the proper form with such surety or security as the Collector may approve. The manufacturer of proper form with such surety or security such excisable goods shall execute a as the Collector may approve. bond in the proper form with such surety or security as the Collector may approve. Explanation:- For the purposes of this rule, excisable goods made in a factory and consumed or utilised- (i) as such or after subjection to any process or processes; or (ii) for the manufacture of any other commodity, whether in a continuous process or otherwise, in such factory or place or premises specified under Rule 9 or storeroom or other place of storage approved by the Collector under Rule 47, shall be deemed to have been issued out of, or removed from such factory, place, premises, storeroom or other place of storage, as the case may be, immediately before such consumption or utilisation." 6. The changes aforesaid are explicit, nevertheless it rebounds to the credit of the learned counsel for the petitioner that he eschewed any specious arguments and fairly conceded that in view of the widely couched amendment of Rules 9 and 49 his case would now surely come within the net of the cess and the levy unless the validity of the said rules or at least their retrospectivity is struck down. Learned counsel could pose no challenge to the amendments made in the said rules. In view of this fair stand, the primary and, indeed, a solitary question that would survive is the constitutionality of Sec. 51 of the Finance Act which accords retrospectivity to Rules 9 and 49. It seems necessary to read Section 51 of the Finance Act as well which is in the terms following : "51. Retrospective effect for certain amendments to Central Excise Rules and validation,- (1) The amendments made in Rules 9 and 49 of the Central Excise Rules, 1944, by the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 74 (E) dated the 20th day of February, 1982, shall be deemed to have, and to have always had, effect on and from the date on which the Central Excise Rules, 1944 , came into force. (2) Any action or thing taken or done or purporting to have been taken or done before the 20th day of February, 1982, under the Central Excise Act and the Central Excise Rules, 1944 , shall be deemed to be, and to have always been, for all purposes, as validly and effectively taken or done as if the amendments referred to in Sub-section (1) had been in force at all material times, and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority- (a) all duties of excise levied, assessed or collected before the 20th day of February, 1982, on any excisable goods under the Central Excise Act, shall be deemed to be, and shall be deemed to have always been, as validly levied, assessed or collected as if the amendments referred to in Sub-section (1) had been in force at all material times; (b) no suit or other proceeding shall be maintained or continued in any court for the refund of, and no enforcement shall be made by any court of any decree or order directing the refund of, any such duties of excise which have been collected and which would have been validly collected if the amendments referred to in Sub-section (1) had been in force at all material times ; (c) refund shall be made of all such duties of excise which have been collected but which would not have been so collected if the amendments referred to in Sub-section (1) had been in force at all material times ; (d) recovery shall be made of all such duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if the amendments referred to in Sub-section (1) had been in force at all material times. * * * * * " It is plain from the language of the aforesaid section that it has distinctly, and with express mandate, given retrospectivity to the amended provisions of Rules 9 and 49. It is well settled beyond cavil that Parliament has plenary power to legislate both prospectively and retrospectively as well within the parameters laid out by the Constitution. It is well settled beyond cavil that Parliament has plenary power to legislate both prospectively and retrospectively as well within the parameters laid out by the Constitution. Herein by a categorical legislative mandate it has chosen to confer retrospectivity on the amended provisions of Rules 9 and 49 apparently with effect from the date when the Central Excises and Salt Act and Rules were originally promulgated in 1944. Learned counsel for the petitioner could pose no challenge to the constitutionality of Sec. 51 and the power of Parliament to enact the same. It must, therefore, be held that Sec. 51 of the Finance Act, 1982 suffers from no legal infirmity. 7. In fairness to learned counsel for the petitioner, one must, however, notice a tenuous attempt to assail the retrospective effect of Rules 9 and 49. It was sought to be argued that Sec.30 of the Industries (Development and Regulation) Act which confers the power to make rules does not itself envisage any retrospective operation for the same. This argument has only to be noticed and rejected. It is common ground that retrospectivity to these provisions is sought to be given not by virtue of anything contained in Sec.30 but primarily and wholly because of the provisions of Sec. 51 of the Finance Act. As already noticed, no constitutional or legal infirmity attaches to the section, therefore, effect must be given to its plain provisions. Once that is done, it is manifest that Rules 9 and 49 as amended must be deemed to have been on the statute book with effect from 1944. That being so, reference to other provisions or peripheral issues becomes irrelevant in the context of the retrospectivity of the rules. 8. Mr. Aftab Alam, the learned counsel for the respondent Revenue, had rightly pointed out that though the cess is leviable under Section 9 of the Industries (Development and Regulation) Act, the procedural provisions for its collection are entirely dovetailed into the Central Excises and Salt Act and the Rules framed thereunder. Our attention was drawn to Sub-section (2) of Section 9 which provides that a cess is to be levied in the manner prescribed. This would take us to Sec.3(g) of the Industries (Development and Regulation) Act which brings in the provisions of the Central Excises and Salt Act. Equally reference may be made to the Jute Manufacturers Cess Rules, 1976. Our attention was drawn to Sub-section (2) of Section 9 which provides that a cess is to be levied in the manner prescribed. This would take us to Sec.3(g) of the Industries (Development and Regulation) Act which brings in the provisions of the Central Excises and Salt Act. Equally reference may be made to the Jute Manufacturers Cess Rules, 1976. Reference to Rule 2(c) and 2(g) and Rule 3 thereof would leave no manner of doubt that the procedural provisions applicable are those under the Central Excises and Salt Act and the Rules framed thereunder. Our attention was also drawn to Items 18D and 22A of Schedule 1 to the Central Excises and Salt Act which make jute yarn of all sorts both manufactured and unmanufactured as leviable to excise duty. As has been noticed earlier, the cess is only an adjunct to the liability of excise duty for the purpose of development of industry. 9. What appears to be plain on principle and the provisions of the statute is equally well buttressed by the solitary precedent which was brought to our notice subsequent to the amendment of Rules 9 and 49 aforesaid. In Civil Writ No. 1858 of 1981, decided on 11th January 1982 (supra) a Division Bench of the Delhi High Court has considered and repelled all the contentions sought to be raised on behalf of the writ petitioner here in their supplementary affidavit. Learned counsel for the petitioner was fair enough to concede that in the aforesaid judgment all the points which he had chosen to raise have been considered in depth and conclusively rejected. 10. To conclude, the answer to the question posed at the outset is rendered in the affirmative and it is held that the cess leviable under Section 9 of the Industries (Development and Regulation) Act, 1951 can be lawfully imposed on jute twine and jute yarn in the process of manufacture. 11. It remains to advert to the earlier Division Bench judgment in Rameshwar Jute Mills Ltds case(supra). A reference to the leading judgment of Hon ble Mr. Justice B.P. Jha would indicate that therein the matter turned primarily on the question as to what amounted to removal under the rules. 11. It remains to advert to the earlier Division Bench judgment in Rameshwar Jute Mills Ltds case(supra). A reference to the leading judgment of Hon ble Mr. Justice B.P. Jha would indicate that therein the matter turned primarily on the question as to what amounted to removal under the rules. It was held by the learned Judge as follows : "I am of the opinion that if the definition of factory is read along with the explanation to Section 9(1) of the Act, it is clear that the cess is not leviable unless the manufactured goods are removed outside the precincts of the factory". It is now common ground that after the amendment of Rules 9 and 49 of the Central Excise Rules the very concept of removal has been radically changed. The legislative amendments have, therefore, in a way taken away the very foundation from under the ratio of Rameshwar Jute Mills Ltds case (1981 Tax. L.R. N.O.C. 11) (Pat.). It necessarily follows that by virtue of the amendment in Rules 9 and 49 and the retrospectivity given to them, Rameshwar Jute Mills Ltds case is no longer attracted to the situation at all.