2004 (9) TMI 136

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..... iable to cess under Jute Manufactures Cess Act, 1983 read with the Jute Manufactures Cess Rules, 1984." 2. The appellants submitted written submissions and prayed for deciding the issue on merits. They submitted that they purchased Hessian cloth on which Jute Cess has already been paid at the appropriate rate and stitched the Hessian cloth on three sides to make jute bags. Cess on jute is not a Multiple Tax and, therefore, they need not pay any cess once again on the bags made by them from Hessian cloth. In the case of composite mills, where the process of manufacturing the Hessian cloth and sacks is continuous, Cess is being paid only once when the sacks are finally cleared from the factory. 3. Shri D.N. Choudhary, learned SDR appearing .....

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..... fty per cent of jute (including Bimlipatam jute or mesta fibre of any sort) by weight of the total fibre content and in the production of which any process is ordinarily carried on with the aid of power; Explanation. - "Power" means electrical energy or any other form of energy which is mechanically transmitted and is not generated by any human or animal agency;" 4. He pleaded that from the definition of jute manufactures and from the Schedule to Section 3(1) of the Jute Manufactures Cess Act, 1983, it is clear that every article specified in this Schedule has to pay Cess when it comes into existence. Therefore, Cess on Hessian bags or Sacking bags will be leviable separately as those are covered under 'any other article of jute manufactu .....

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..... s as leviable be collected on the intermediate jute products. Thus, even in composite mills, the Cess was being collected on intermediate jute products consumed captively for the manufacture of jute bags. 4. On careful consideration, we are of the view that Cess has to be collected on each product mentioned in the Schedule to Jute Manufactures Cess Act, 1983. Since there are separate entries for Hessian, Sacking and for 'any other article of jute manufacture', therefore, the separate Cess has to be collected on Hessian Bags and Sacking Bags, manufactured from cess paid Hessian and Sacking. 5. The reference is, therefore, answered in favour of the Revenue. 6. The appeal is sent back to the Division Bench for its final disposal.
Case l .....

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