Cess classification of hessian and sacking bags held to fall under specific entries, not the residuary entry.

Hessian bags and sacking bags were held classifiable for cess under serial Nos. 2 and 3 of the relevant notification, not under the residuary serial No. 7. The Tribunal treated the notification and trade notice as covering hessian bags within hessian and sacking bags within sacking, and followed its earlier view that jute bags fell within sacking for cess purposes. On that basis, the Department could not move the goods to the residuary entry. The matter was remanded for fresh quantification of cess on the correct classification.

---

---

Issues: Whether hessian bags and sacking bags were classifiable for cess under serial No. 2 and 3 of the relevant notification, or under the residuary serial No. 7.

Analysis: The dispute was confined to the proper classification of the finished bags for levy of cess. The governing notification and the Commissionerate trade notice treated hessian as including hessian bags and sacking as including sacking bags. The Tribunal also relied on its earlier view that jute bags were covered by the expression "sacking" for cess purposes. In these circumstances, the bags could not be shifted to the residuary entry merely because the Department sought to levy cess under serial No. 7.

Conclusion: The bags were liable to cess under serial No. 2 and 3 of the notification and not under serial No. 7. The matter was remanded for fresh quantification of cess on that basis.

---