Jute cess on captively used jute fabrics upheld; Tribunal followed settled Supreme Court position and sustained the levy.

Jute cess was held leviable on jute fabrics even where the fabrics were used captively in the manufacture of jute bags, the Tribunal applying the Supreme Court position already treated as settled. The challenge to the constitutional validity of section 9 of the Industries (Development and Regulation) Act was not examined, as the Tribunal considered itself not competent to record a finding on that question. The operative effect was that the cess demand on captively consumed jute fabrics was sustained against the assessee.

---

---

Issues: Whether jute cess is leviable on jute fabrics used captively in the manufacture of jute bags.

Analysis: The question was treated as already settled by the Supreme Court decision referred to in the order. Applying that settled position, the Tribunal held that jute cess is chargeable on jute fabrics even when such fabrics are used captively for manufacture of jute bags. The challenge based on the constitutional validity of section 9 of the Industries (Development and Regulation) Act was not gone into, as the Tribunal held that it was not competent to record any finding on that question.

Conclusion: The levy of cess on captively used jute fabrics was upheld against the assessee.

---