Central Excise - Special procedure under Rule 49A - Relevant date for ascertaining rate of duty - Clarification regarding - Central Excise - 30/88-CX.6

Central Excise - Special procedure under Rule 49A - Relevant date for ascertaining rate of duty - Clarification regarding Circular No. 30/88-CX.6 Dated 15-4-1988 [From F. No. 223/27/87-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Special procedure under Rule 49A - Relevant date for ascertaining rate of duty - Clarification regarding. Doubts have been raised as to whether Instructions issued under Board's F. No. 261/18/A/10/79-CX.8, dated 23-4-1981 read with F. No. 202/27/ 80-CX.6, dated 21-6-1980 on the above subject are still relevant or not. 2. The matter has been examined by the Board. It is observed that the Instructions, dated 23-4-1981 are based on the premise that goods removed for captive consumption cannot be said to have been "actually removal from the factory" as per sub-rule (1) of rule 9A of the Central Excise Rules, 1944. However, with the issue of the Notification No. 20/82, dated 20-2-1988, it was clarified that the removal of the goods for captive consumption was also removal in terms of rules 9 and 49. This notification was given retrospective effect by the Finance Bill, 1982. As such immediately after the issue of Notification No. 20/82, dated 20-2-1982, Board's instructions, dated 21-6-1980 and 23-4-1981 referred to above became otiose. Thus in case of yarn removed without payment of duty under rule 49A for purposes of weaving of fabrics, the duty on yarn (apart from interest) was all along required to be paid at the fabric stage, at the rate applicable at the time of removal of the yarn for purposes of weaving, in terms of clause (ii) of sub-rule (1) of rule 9A of the Central Excise Rules, 1944.