Jute manufactures cess applies to finished bags sold, even if cess was already paid on the input fabric stage.

Jute hessian and sacking bags made from duty-paid hessian and sacking fabrics remained liable to jute manufactures cess because the levy under the Jute Manufactures Cess Act, 1983 applies to each finished jute article specified in the Schedule or covered by the residuary entry when produced in India. Rule 3 also fastens cess on finished jute manufactures removed for sale. As the bags were distinct finished goods removed for sale, prior cess payment on the input fabrics in another factory did not bar a fresh levy on the bags. The lower appellate authority's contrary view was incorrect, and the issue was decided in favour of Revenue.

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Issues: Whether jute hessian and sacking bags manufactured from duty-paid hessian and sacking fabrics are again liable to jute manufactures cess under the Jute Manufactures Cess Act, 1983 and the Jute Manufactures Cess Rules, 1984.

Analysis: The levy under section 3 of the Act extends to every article of jute manufacture specified in the Schedule and produced in India. Hessian and sacking are separately specified, and any other article of jute manufacture is covered by the residuary entry. Rule 3 of the Rules makes cess payable on finished jute manufactures removed for sale. Since the respondent manufactured jute bags, which are distinct finished articles and were removed for sale, the fact that cess had already been paid on the input fabrics in another factory did not prevent a fresh levy on the bags.

Conclusion: The bags were liable to cess again, and the contrary view of the lower appellate authority was incorrect; the issue is decided in favour of Revenue.

Ratio Decidendi: Under the Jute Manufactures Cess Act, 1983, cess is leviable on each finished jute manufacture specified in or covered by the Schedule when it is produced and removed for sale, even if cess had already been paid on the input fabric at an earlier stage.

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