JUDGMENT

B. P. JEEVAN REDDY, J.:—The petitioners in this batch of writ petitions question the validity of the levy and collection of cess under S. 3 of the Vegetable Oils Cess Act, 1983 for the period commencing 1st March, 1986 and ending with 31st March, 1987.

2. Parliament enacted in the year 1983 the National Oilseeds and Vegetable Oils Development Board Act, 1983 (being Act 29 of 1983) hereinafter referred to as the Board Act. The Act was intended to provide for the development, under the control of the Union, of the Oilseeds Industry and the Vegetable Oils Industry and for matters connected therewith. The Act contemplated establishment and constitution of board called the National Oilseeds and Vegetable Oils Development Board. The functions of the Board were specified in S. 9. In short the duty of the Board was to promote the development, by such measures as it thought fit, subject to the control of the Central Government, the Oilseeds Industry and the Vegetable Oils Industry. S. 12 provided for constitution of Oil Seeds and Vegetable Oils Development Fund. The fund was to be applied for promoting the purposes of the Act.

3. Simultaneously with the Board Act was enacted the Vegetable Oils Cess Act. 1983 (being Act 30 of 1983), hereinafter referred to as the Cess Act. The purpose of this Act is stated in sub-sec. (1) of S. 3. It is to levy and collect "by way of cess, for the purpose of the National Oil Seeds and Vegetable Oils Development Board Act, 1983, a duty of excise on vegetable oils produced in any mill in India at such rate not exceeding Rs. 5/- per quintal on vegetable oil, as the Central Government may, from time to time, specify by notification in the Official Gazette". Sub-sec. (2) of S. 3 clarified that the duty of excise levied under sub-sec. (1) S. 3 shall be in addition to the duty of excise leviable or vegetable oils under the Central Excises and Salt Act, 1944 or any other law for the time being in force. Sub-sec. (3) stated that the duty of excise levied on S. 3(1) shall be payable by the occupier of the mill in which the vegetable oil is produced. Sub-sec. (4) provided that the provisions of the Central Excise Act and the Rules made thereunder including those relating to refunds and exemptions from duty, "shall so far as may be, apply in relation to the levy and collection of the duty of excise as they apply in relation to the levy and collection of the duty of excise on vegetable oils under that Act". S. 4 provided that the proceeds of the duty of excise levied under S. 3(1) shall first be credited to the Consolidated Fund of India. Subject to appropriation made by law by the Parliament, the Central Government could pay to the Board from time to time such amounts from out of the said collections as it thought fit for being utilised for the purposes of the Board. S. 7 amended certain provisions of the Produce Cess Act, 1966.

4. It is thus clear that the cess, which is called a duty of excise, levied under Section 3 of the Cess Act was intended to serve the purposes of the Board Act. The said cess was accordingly levied and collected on and from 1983. The Cess Act was, however, repealed by Section 12 of the Cotton, Copra and Vegetable Oils Cess (Abolition) Act, 1987 (being Act 4 of 1987), hereinafter referred to as the Repeal Act. Chapter IV of the Repeal Act provides for the repeal inter alia of the Vegetable Oil Cess Act, 1983. Section 12 is the repeating section. Chapter V, containing only one section namely Section 13, is relevant for purposes. Chapter V carries the heading "COLLECTION OF ARREARS OF DUTIES OF EXCISE". Section 13 reads as follows:

"13. Collection and payment of arrears of duties of excise - Notwithstanding anything contained in the amendments made to the Produce Cess Act, 1966 (15 of 1966) or the repeal of the Copra Cess Act, 1979 (4 of 1979) or the Vegetable Oils Cess Act, 1983 (30 of 1983), by this Act, any duty of excise, levied under any of the said Acts immediately before the commen