Levy of cess on laminated jute bags and laminated jute fabrics - Regarding - Central Excise - 30/89

Levy of cess on laminated jute bags and laminated jute fabrics - Regarding Circular No. 30/89 Dated 6-7-1989 [From F. No. 262/12/84-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Levy of cess on laminated jute bags and laminated jute fabrics - Regarding. Doubts have been raised with regard to multi point imposition of cess on jute manufacturers during the period 1-3-1976 to 1-5-1984 whereafter, provisions have been made under the Jute Manufactures Cess Act, 1983 (and the rules made thereunder) to collect cess only on the finished product. Andhra Pradesh Calcutta High Courts have upheld the leviability of cess on intermediate jute products consumed captively for manufacture of jute products during the period 1-3-1976 to 1-5-1984. It has, therefore, been directed by the Board that cess as leviable be collected on the intermediate jute products during the period 1-3-1976 to 1-5-1984 in terms of judgments of the High Courts. Demands raised on this account may be settled accordingly and cases pending in the courts may also be defended accordingly. Board's instructions issued vide Circular No. 36/88, dated 9-8-1988 may be treated as modified to this effect. The Trade Notices issued pursuant to Board's aforesaid instructions may also be withdrawn.