Separate cess on distinct jute articles applies even when inputs already suffered cess under the statute.

Separate cess is chargeable under the Jute Manufactures Cess Act, 1983 on each distinct scheduled jute article as it comes into existence. The statutory levy applies to every article of jute manufacture specified in the Schedule, and the definition of jute manufacture covers scheduled articles containing more than fifty per cent jute by weight and produced with power. Because hessian, sacking and other scheduled articles are separately enumerated, manufacture of bags from cess-paid jute fabric attracts cess again. Prior payment of cess on the input or intermediate product does not prevent levy on the later distinct manufactured article.

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Issues: Whether hessian bags and sacking bags made out of cess-paid jute fabrics are liable to cess again under the Jute Manufactures Cess Act, 1983.

Analysis: The levy under Section 3(1) of the Jute Manufactures Cess Act, 1983 applies to every article of jute manufacture specified in the Schedule. The definition of jute manufacture in Section 2(a) covers scheduled articles containing more than fifty per cent jute by weight and produced with power. As the Schedule contains separate entries for hessian, sacking and any other article of jute manufacture, each distinct manufactured article attracts cess when it comes into existence. The fact that the inputs had already suffered cess does not prevent levy on the subsequently manufactured bags.

Conclusion: The bags are liable to cess separately, and the issue is answered in favour of the Revenue.

Final Conclusion: Separate cess is chargeable on each distinct scheduled jute article produced, even where the raw material or intermediate product has already suffered cess.

Ratio Decidendi: Where a cess statute levies duty on each scheduled article of manufacture, a later distinct manufactured article is independently liable to cess notwithstanding prior cess on the input or intermediate product.

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