1991 (8) TMI 210

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....be submitted by this Tribunal :- "Whether, 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 app....

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....7-10-1984,12-12-1984 arid 22-11-1984 respectively against the above show cause notices. They pointed out that the Cess duty become payable under 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....

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.... Collector. He also observed that prior to 1-10-1984 since there was no explicit provision granting exemption the said Cess duty was payable even 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 supplement....