https://www.taxtmi.com/caselaws?id=377730 Rule 49A of the Central Excise Rules, 1944 made payment of duty on cotton yarn along with duty on cotton fabrics optional, operating only when the manufacturer applied for and obtained permission. Although the rule referred to an amount described as interest on yarn duty, it did not create an independent charging provision for levy of interest. As no application had been made to avail the facility under Rule 49A, and the competent authority had earlier recorded that the rule was optional, interest was not chargeable. The refund claim could not be rejected on that basis, and the appeals were allowed in favour of the assessee. en-us Mon, 01 Apr 2019 00:00:00 +0530 Tue, 16 Apr 2019 15:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377730 Rule 49A of the Central Excise Rules, 1944 made payment of duty on cotton yarn along with duty on cotton fabrics optional, operating only when the manufacturer applied for and obtained permission. Although the rule referred to an amount described as interest on yarn duty, it did not create an independent charging provision for levy of interest. As no application had been made to avail the facility under Rule 49A, and the competent authority had earlier recorded that the rule was optional, interest was not chargeable. The refund claim could not be rejected on that basis, and the appeals were allowed in favour of the assessee. Case-Laws Central Excise Mon, 01 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377730