(1.) There is a total demand of cess of Rs. 3,04,393/ - on the appellants in respect of Black Tea and Reprocessed Tea Rejects cleared from their three tea factories during the period of dispute. The demand is under Section 25 of the Tea Act, 1953. Ld. Counsel for the appellants refers to the proviso to Sub -section (1) of Section 25 of the above Act and submits that cess is payable only on tea produced by estates or gardens and not on any goods arising out of processing of such tea. In the instant case, the demand of cess is on processed or re -processed tea. Ld. DR, on the other hand, submits that the Central Government have subsequently exempted various stages of manufacture of tea powder from levy of cess, which, according to him, implies that such stages were exigible to such levy prior to the exemption. Ld. DR also relies on a decision of the Tribunal's Larger Bench in N. Ramanjaneyulu and Ors. v. CCE, Guntur [2004 (173) E.L.T. 471 (Tri. -LB)] wherein Hessian bags made from cess paid jute fabric was held liable to cess under the Jute Manufacturers Cess Act, 1983.
(2.) After examining the submissions, we find a strong case for the appellants on the strength of the proviso to Section 25(1) of the Act. No similar provision under the Jute Act has been brought to our notice by ld. DR to show that the case law cited by him is reliable in this case. Having regard to the prima facie case, we grant Waiver of pre -deposit and stay of recovery in respect of the aforesaid amount of cess.