9911796707
TMI Blog1991 (8) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted by this Tribunal :- Whether, on the facts and in the circumstances of the case the Tribunal was right in holding that cess on Jute yarn captively consumed by the petitioner for manufacture of other jute goods within the same factory was payable by the petitioner under the Industries (Development and Regulation) Act, 1951 read with Jute Manufactures Cess Rules, 1976 though such cess was paid Jute goods at the time of final clearance from the factory. 2. Therefore, a Statement of the Case is furnished below: STATEMENT OF THE CASE 1. M/s. Hastings Mill (Jute Division) of M/s. Digvijay Cement Company (the appellants herein) are the manufacturers of Jute yarn, twine and jute products at their factory at Rishra. The appellants p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 9(2) read with Section 11A of the Central Excises and Salt Act, 1944. 4. The appellants replied vide their letters dated 21-12-1983, 7-12-1983,17-10-1984,12-12-1984 arid 22-11-1984 respectively against the above show cause notices. They pointed out that the Cess duty become payable under Rule 9 of the Central Excise Rules read with Jute Manufactures Cess Rules, 1976 and Section 9 of the Industries (Development and Regulation) Act, 1951 only when the goods are removed outside the factory. They clarified that for the purpose of manufacturing jute twine and jute products within the factory premises whenever the jute yarn is removed the above cess will not be payable on such jute yarn. 5. After granting the personal hearing duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the decision of the Calcutta High Court in the case of Fort William Company Limited, 1979 (4) E.L.T. (J. 23) confirmed the demand raised by the Assistant Collector. He also observed that prior to 1-10-1984 since there was no explicit provision granting exemption the said Cess duty was payable even if the jute yarn is consumed captively in the manufacture of jute articles. 7. Against the above orders-in-appeal, appeals and stay applications were filed before the Customs, Excise Gold (Control) Appellate Tribunal, New Delhi. The appellants also filed Misc. applications to the stay applications through which certain additional grounds were brought before the Hon ble Tribunal. It was pleaded before the Tribunal that though decisions exist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under Section 35G(1) of the Central Excises and Salt Act, 1944, requesting the Tribunal to refer to the High Court the following points :- Whether in the facts and circumstances of the case the Tribunal was right in holding that the Cess duty on jute yarn captively consumed for the manufacture of goods within the factory was payable under the Industries (Development and Regulation) Act, 1951 read with Jute Manufactures Cess Rules, 1976, even though such Cess was payable on the jute at the time of final clearance from the factory . They also filed a stay application alongwith the reference application requesting the Tribunal to stay the demand of Rs. 9,34,455.20. 9. The Tribunal rejected the aforesaid stay application and reference ..... X X X X Extracts X X X X X X X X Extracts X X X X
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