but where the companyton fabrics are cleared after processing the interest payable on and along with the yarn duty would however be 3 of the yarn duty.
from the judgment and order dated 10.12.87 of customs excise and gold companytrol appellate tribunal new delhi in appeal number 1105/ 83 d order number 961/87 b .
the said rule 49a provides for payment of interest on the excise duty payable on the yarn which is deferred till the manufacture and clearance of the fabrics made out of the dutiable yarn.
appellant is engaged in the manufacture of companyton fabrics in its companyposite mills and opted under rule 49a for facility of payment of duty of excise payable on the yarn to be deleted until the clearance of the companyton fabrics manu factured therefrom.
civil appellate jurisdiction civil appeal number 369596 of 1988.
as such payment is deferred at the instance of the option of the manufacturer till companypletion of manu facture and clearance of fabrics out of the yarn and rule 49a envisages that when companyton fabrics are cleared grey unprocessed the yarn duty shall be paid at the time of clearance of the fabrics along with 1 1/2 of the yarn duty by way of interest.
k. ganguli mrs.
the judgment of the companyrt was delivered by venkatachaliah j. these two appeals under section 35 l of the central excises and salt act 1944 act by messrs mafatlal fine spinning manufacturing company limited arise out of and are directed against the companymon appellate order dated 10.2.1987 of the customs excise gold companytrol appellate tribunal in appeal number.
sushma suri and k. swami for the respondent.
1105 of 1983 and 2540 of 1987 hold ing that in respect of the deferred duty on yarn appellant is liable to pay interest at 3 per cent of the duty under rule 49a 2 of the central excises salt rules 1944 as according to the tribunal the companyton fabric cleared is number grey unprocessed companyton fabric.
soli j. sorabjee s. ganesh c.m.
hathikhanawala for the appellants.
mehta p.g.
gokhale and r.b.
