2019 (4) TMI 174

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....oduct of final product i.e. unprocessed cotton fabrics and processed cotton fabrics. The appellant filed refund claim of interest paid on BED and AED(TTA) paid in terms of Rule 49A of the Central Excise Rules, 1944 on captive consumption of cotton yarn used in the manufacture of unprocessed cotton fabrics cleared for home consumption as well as the final products i.e. unprocessed cotton fabrics is exempt from payment of duty but appellant was liable to pay duty on cotton yarn which is intermediate product at the time of clearance for captive consumption. As per Rule 49A of the Central Excise Rules, 1944 if the duty is not paid at the time of clearance of yarn for captive consumption, the same alongwith interest can be paid later on at the t....

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....esh. The adjudicating authority rejected the refund claim.On appeal before the Ld. Commissioner (Appeals), the Ld. Commissioner (Appeals) also rejected their refund claim. Therefore, the appellant is before us. 3. The Ld. Counsel for the appellant submits that they have paid the interest on insistence of the department under Rule 49A of the Central Excise Rules, 1944. As there is no charging section, therefore, provision of Rule 49A cannot be invoked against the appellant. He further submits that in separate proceedings, where demand of duty was made on yarn for captive consumption, the Commissioner vide order dated 20.10.2004 disposed the demands for the period 1996-2001, but, categorically held that interest under Rule, 49A was not pay....

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....ication to the Commissioner in this behalf, shall, on such application being granted by the Commissioner, pay the duty leviable on such cellulosic spun yarn and such cotton yarn along with the duty on such cotton fabrics in the manner prescribed in rule 52, subject to the following conditions, namely:- (1) when the cotton fabrics are cleared grey (unprocessed), the yarn duty payable shall be- (a) the appropriate duty payable on such cellulosic spun yarn or cotton yarn, or both, as the case may be; plus (b) one and a half per cent of the duty payable on such cellulosic spun yarn, or cotton yarn, or both, as the case may be, by way of interest on the amount of yarn duty; (2) when the cotton fabrics are cleared after pr....