1991 (8) TMI 210

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....her, on the facts and in the circumstances of the case the Tribunal was right in holding that cess on Jute yarn captively consumed by the petitioner for manufacture of other jute goods within the same factory was payable by the petitioner under the Industries (Development and Regulation) Act, 1951 read with Jute Manufactures Cess Rules, 1976 though such cess was paid Jute goods at the time of final clearance from the factory." 2. Therefore, a Statement of the Case is furnished below: STATEMENT OF THE CASE 1. M/s. Hastings Mill (Jute Division) of M/s. Digvijay Cement Company (the appellants herein) are the manufacturers of Jute yarn, twine and jute products at their factory at Rishra. The appellants possess the necessary Central Excise Li....

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....der Rule 9 of the Central Excise Rules read with Jute Manufactures Cess Rules, 1976 and Section 9 of the Industries (Development and Regulation) Act, 1951 only when the goods are removed outside the factory. They clarified that for the purpose of manufacturing jute twine and jute products within the factory premises whenever the jute yarn is removed the above cess will not be payable on such jute yarn. 5. After granting the personal hearing during the process of adjudication of the above show cause notices the Assistant Collector of Central Excise, Serampore Division passed orders-in-original No. 48/87 dated 23-11-1987, 49/87 dated 25-11-1987, 50/87 dated 25-11-1987, 51/87 dated 25-11-1987 and 53/87 dated 30-11-1987 confirming the demands ....

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.... if the jute yarn is consumed captively in the manufacture of jute articles. 7. Against the above orders-in-appeal, appeals and stay applications were filed before the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi. The appellants also filed Misc. applications to the stay applications through which certain additional grounds were brought before the Hon'ble Tribunal. It was pleaded before the Tribunal that though decisions exist against the appellants since the appellant company has been in a very poor financial condition which can be seen from the balance sheet and the supplementary submissions, the appellants sought for a long time for depositing the duty. The Hon'ble Tribunal while disposing of the stay applications dispo....