The union government cannot charge or recover cess under two separate laws for export of processed agriculture products, such as wheat flour, the Gujarat High Court has held.
The court, while allowing a petition of Gujarat Ambuja Exports Limited, prohibited the government from simultaneously levying and recovering cess under the Agriculture and Processed Food Products Export Cess Act and the Agriculture Produce Cess Act on wheat-flour exported by the company.
The division bench of the court comprising Justice Harsha Devani and Justice H.B. Antani, in an order made available Thursday, said: ‘The respondents shall levy and recover only one cess, that is, under the Agricultural and Processed Food Products Export Cess Act.’
The petitioner, a public limited company, approached the high court after being aggrieved by customs authorities asking it to pay the cess under both the laws.
Dhaval Shah, counsel for the company, contended that the cess can be levied only once either in respect of primary products or in respect of processed products.
