Explanation:

A cess is a form of tax levied by the government on tax with specific purposes till the time the government gets enough money for that purpose. For example, the Swachh Bharat cess is levied by the government for cleanliness activities that it is undertaking across India.

• Cess is a form of tax levied over and above the base tax liability of a taxpayer.
• Cess is resorted to only when there is a need to meet the particular expenditure for public welfare.
• Cess is not a permanent source of revenue for the government, and it is discontinued when the purpose of levying it is fulfilled. 
• It can be levied on both indirect and direct taxes.
• Cesses and levies collected are required to be first transferred to designated Reserve Funds and utilised for the specific purposes intended by Parliament.
• Funds collected through Central taxes along with cesses and other levies go to the CFI.
• Taxes and surcharges in CFI are parked in a divisible pool and 42% of the total is given to States as devolution
• Another major difference between central taxes and cess is that the proceeds of a cess may or may not be shared with the state governments, while that of taxes have to be shared.

Hence only statements 1&3 are correct.