9911796707
TMI Blog1994 (6) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Accordingly, we have perused the above submissions and heard the learned Departmental Representative. 4. In the written submissions, the appellants have sought leave to withdraw their prayer with reference to the question of leviability of Cess on the items in question. The request is allowed. 5. Two questions therefore survive for our consideration : (i) Whether Cess was payable on Stitching Twine, Sacking Packsheet and Hessian Packsheet captively used for stitching/packing of the jute goods exported under bond during the period June, 1984 to 14-10-1984. (ii) The classification and rate of duty applicable to Sacking Bags and the above articles. 6. Learned D.R. has stated that the appellants have claimed exemption from Cess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable to Cess. 10. The appellants have drawn our attention to Sections 3.1 and 3.4, in support of their contention that the provisions of Central Excise relating to exemption and refund are applicable for the purpose of levy and collection of Cess, but the issue has already been settled by the Tribunal s order in the case of Nellimarla Jute Mills [1987 (31) E.L.T. 209]. Para No.12 of the said order which makes the point clear is reproduced herewith for ready reference :- 12. We have carefully considered the submissions of both sides. Section 3(4) of the Cess Act makes the provisions of the Central Excise Act and the Central Excise Rules (including those relating to refunds and exemptions from duty) applicable so far as may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lt insofar as the present cases are concerned because of the operation of Section 3(4) of the Cess Act. In our opinion, this result will not follow from Central Excise Notification No. 56/72. Our reason for saying so are the following. Firstly, that notification exempts goods in the circumstances stated therein from duty . The expression duty for the purpose of the Central Excise Rules is defined as duty payable under Section 3 of the Act (Central Excise Rule 2(v). Section 3 of the Act (i.e. the Central Excises Act) provides for levy and collection of duties of excise on all excisable goods produced or manufactured in India as, and at the rates set forth, in the First Schedule to the Act. This duty is not the same thing as the duty lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess in respect of Jute Bags raised by them. No finding has been recorded by the lower authorities specifically on the aspect of classification and rate of duty but the appellants have stated that Nellimarla Jute Mills case settles the issue on classification of Sacking and holds that both Sacking Cloth and Sacking Bags are covered by the term `Sacking classifiable under S. No. 3. The appellant is right in this respect; the departmental authorities are therefore required to keep the above judgment in view and determine and apply the rate of Cess accordingly. 14. The Sacking Packsheets would also be classifiable accordingly. 15. Following the ratio of the above order, the Hessian Cloth/Sheets and Bags would be classifiable under S. No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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