Double levy of cess barred where duty was already paid at the earlier taxable stage of hessian cloth used for jute bags.

Cess was held not payable again on hessian/jute bags where the cess had already been discharged at the earlier taxable stage on the hessian cloth used to make the bags. The invoices showed payment at the fabric stage, and the same goods could not be subjected to cess a second time at the subsequent stage of sale or use. The prior Tribunal view, affirmed by the Calcutta High Court, supported this position and the impugned order was set aside in favour of the assessee.

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Issues: Whether cess was payable again on hessian/jute bags when cess had already been paid at the earlier fabric stage.

Analysis: The invoices on record showed payment of cess at the stage of purchase of the hessian cloth used for the bags. The issue had already been decided by the Tribunal in earlier proceedings and that view had been upheld by the Calcutta High Court. On the facts found, the duty had been discharged at the first stage, and the same goods could not be subjected to cess again at the subsequent stage.

Conclusion: Cess was not payable again on the hessian/jute bags. The impugned order was set aside and the appeals were allowed in favour of the assessee.

Ratio Decidendi: Where cess has already been paid at the earlier taxable stage of the same goods, no further cess can be levied again on the subsequent sale or use of those goods.

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