2004 (7) TMI 488 - AT - Central Excise

Summary

The judgment by the Appellate Tribunal CESTAT, Mumbai dealt with interest on yarn in Gray Fabrics and penalty imposition. The issue arose due to non-compliance with Rule 49A procedure during clearances made from July to December 1997. The tribunal ruled that Rule 49A is not mandatory, but failure to discharge duty on yarn before textile fabrication attracts penalty under Rule 173Q. The penalty of Rs. 5,000 was confirmed, while the demand under Rule 49A was set aside. The appeal was allowed in favor of the appellant.