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Issues:
1. Leviability of Cess on specific items used for stitching/packing jute goods. 2. Classification and rate of duty applicable to certain jute articles. Analysis: The appeal before the Appellate Tribunal CEGAT, New Delhi concerned the leviability of Cess on certain items used for stitching and packing jute goods, and the classification and rate of duty applicable to these articles. The appellants expressed their inability to appear but submitted written arguments seeking to withdraw their prayer regarding the leviability of Cess on the items in question. The Tribunal allowed this request, leading to two remaining questions for consideration. Firstly, whether Cess was payable on specific items used for stitching and packing jute goods exported under bond during a specified period. Secondly, the classification and rate of duty applicable to Sacking Bags and related articles were in dispute. The Departmental Representative pointed out that Central Excise exemptions do not automatically apply to Cess, and the question of classification had not been adequately addressed by the lower authorities. The Department classified the items under a specific entry, while the appellants claimed a different classification. The Tribunal referred to a previous order regarding the applicability of Central Excise provisions to the levy and collection of Cess, emphasizing that exemptions from Central Excise duty do not automatically extend to Cess. The Tribunal also noted that the items in question were distinct from those covered in previous orders, requiring separate classification. Regarding the classification issue, the Tribunal acknowledged the appellants' reference to a previous case but emphasized the need for a specific determination by the departmental authorities. The Tribunal directed the authorities to consider the previous judgment and determine the classification and rate of Cess accordingly. It was clarified that different items such as Sacking Packsheets and Hessian Cloth/Sheets should be classified separately based on their distinct characteristics. The Tribunal also highlighted the classification of Jute Yarn or Stitching Twines under a specific entry in the Cess Schedule, emphasizing the need for accurate classification based on the provided guidelines. In conclusion, the Tribunal remanded the matter to the lower authorities for a reassessment of the actual liability considering the observations, findings, and legal provisions discussed in the judgment. The appeal was disposed of with these directions for further proceedings to determine the appropriate leviability of Cess and the correct classification and rate of duty for the items in question.
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