TMI Blog2019 (4) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... chnical) For Appellant (s): Shri Rajesh Chibber, Advocate For Respondent (s): Smt. Seema Arora, AR ORDER Per: Mr. Ashok Jindal The appellant are in appeals against the impugned orders for demanding interest under Rule 49A of the Central Excise Rules, 1944. 2. The facts of the case are that the appellant are engaged in the manufacture of Cotton Yarn, Cotton Fabrics. The cotton yarn is intermediate product 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and this Tribunal vide final order dated 13.06.2005, 15.06.2005 and 02.03.2006 has allowed the refund on the ground that they are not paid any duty in respect of cotton yarn captively consumed in the manufacture of processed fabrics and they were only to pay duty in respect of the cotton yarn which is captively consumed and cleared for home consumption and remanded matter back to the adjudicating authority to decide the issue afresh. 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 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fibre falling within Chapter 52 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) or both, and uses the whole or part of the yarn so manufactured in the manufacture of cotton fabrics in his own factory; or (ii) who being a composite mill, brings such yarn under rule 96E or rule 96EE, as the case may be, from outside for the purpose of manufacture of cotton fabrics in his own factory, makes an application 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d how the interest to be collected as there is no charging provision for collection of interest, therefore, we hold that no interest is payable by the appellant. Moreover, we have gone through the order No. 100-105/CE/JAL/2004 dated 20.10.2004, in appellant s own case, wherein the Ld. Adjudicating Authority has observed as under:- 60. I see that provisions of Rule 49A are optional for a manufacturer, for availing provision of Rule 49A, the manufacturers shall apply to the commissioner and for availing the facility of payment of duty at later stage the permission of Commissioner was required. Since no such application was made by the Noticees, the department cannot trust upon the provisions of Rule 49A upon the Noticees. Hence, interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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