Chittatosh Mookerjee, J. - (1.) The appellants companies arc manufacturers of the jute products like jute twine, yarn, sacking, carpet backing etc. The appellants have further claimed that portions of jute twine and jute yarn manufactured by them are used for producing finished products, namely, jute textiles. In other words, portions of jute twine and jute yarn are their intermediate products for captive consumption.
(2.) Jute Textile Industries is one of the industries specified in the First Schedule of the Industries (Development and Regulation) Act, 1951. But the specifications relating to jute industry in the First Schedule of the said Act have been from time to time amended/substituted. The Act LXX1 of 1956 substituted the First Schedule of the Industries (Development and Regulation) Act, 1951 with effect from 1st of March, 1957. The Heading No. 23 of the First Schedule is as follows :- "Textiles (including those dyed, printed or otherwise processed); (1) * * * * (2) made wholly or in part of jute, including jute twine and rope. (3) * * * * (4) * * * * (5) * * * * By the said amending Act of 1956, two Explanations have been also inserted in the First Schedule of the Parent Act."
(3.) The Central Government by G.S.R. 89(E), dated 18th February, 1976 made and published the Jute Manufactures Cess Rules, 1976. The clause (f) of Rule 2 of the said Jute Manufactures Cess Rules, 1976 defined "jute manufactures" as 'manufactures of jute' of Bimlipatam jute or of Mesta fibre of all sorts including : (1) twist, yarn, thread, rope and twine, all sorts, containing more than 50 per cent by weight of jute (including Bimlipatam jute or Mesta fibre) calculated on the total fibre content in or in relation to the manufacture of which any process is ordinarily carried on with aid of power ; (2) others, but excluding any such manufacture,-- (i) * * * * (ii) * * * *;