ORDER

G.P. Aganval, Member (J)

1. In the case of Barnagore Jute Factory Co. and Ors. v. Inspector of Central Excise and Ors., 1992 (57) E.L.T. 3 (SC) , it was held by the Apex Court that Cess under the provisions of the Industries (D & R) Act is a duly of excise to which the provisions of the Central Excises and Salt Act, 1944, and the Central Excise Rules made thereunder apply. Excise duly on intermediate products was permissible under the unamended Central Excise Rules 9 and 49 and, therefore, cess was also leviable in the same way. Since Jute yarn is a product manufactured in a scheduled industry, it is liable to cess even if it is an intermediate product that is captively consumed and further that levy of cess on the basis of weight is not violative of Section 9( 1) of the Industries (D & R) Act, as the main limb of the Section does not restrict the levy to an ad valorem basis.

2. In the instant appeal identical question also arises in the following circumstances : The appellants are manufacturers of Ream Wrapper Paper as also other varieties of paper including Newsprint and Creamwove Paper. They use Ream Wrapper Paper in the process of manufacture of their other varieties of paper. It was the contention of the appellants that no cess is leviable on Ream Wrapper Paper since it is captively consumed within the factory and is not cleared as such and further that it is not bought and sold in the market. The Assistant Collector in his Adjudication Order held that the Ream Wrapper Papers are marketable and cess is leviable.

3. When the case was called Shri K.K. Bhatia, learned JCDR, at the outset, drew the attention of the Bench to the aforesaid case, namely, Barnagore Jute Factory Co. and Ors. v. Inspector of Central Excise and Ors. , supra, decided by the Apex Court and submitted that cess is leviable. Faced with the aforesaid pronouncement of the Apex Court, Shri Naveen Ravindranath, learned counsel for the appellants, had no comments to offer except to say that whatever was contended by the assessee, namely, Barnagore Jute Factory Co. & Others, in the aforesaid case before the Apex Court may be treated as his arguments for the purpose of present appeal.

4. Considered. Following the ratio of the aforesaid decision rendered by the Apex Court in the case of Barnagore Jute Factory Co. & Ors. v. Inspector of Central Excise and Ors. , supra, we dismiss the appeal and affirm the orders passed by the authorities below. Cross Objection also stands disposed of accordingly.