https://www.taxtmi.com/caselaws?id=80927 Rule 49A postpones duty on yarn and the related interest until duty on fabrics is paid under Rule 52, which applies to removal for home consumption and assessment of duty. Where cotton fabrics are exported under bond under Rule 13, the export bond is discharged on fulfilment of the export obligation and no duty is payable on the fabrics. In that situation, by virtue of Explanation 2(ii) to Rule 13, no duty is payable on the yarn used in the exported fabrics either, so interest cannot be levied on a non-existent duty liability. The demand for interest was therefore unsustainable. en-us Tue, 23 Oct 1990 00:00:00 +0530 Tue, 21 Jun 2011 12:47:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=80927 Rule 49A postpones duty on yarn and the related interest until duty on fabrics is paid under Rule 52, which applies to removal for home consumption and assessment of duty. Where cotton fabrics are exported under bond under Rule 13, the export bond is discharged on fulfilment of the export obligation and no duty is payable on the fabrics. In that situation, by virtue of Explanation 2(ii) to Rule 13, no duty is payable on the yarn used in the exported fabrics either, so interest cannot be levied on a non-existent duty liability. The demand for interest was therefore unsustainable. Case-Laws Central Excise Tue, 23 Oct 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=80927