Applicability of rule 49A in respect of exempted fabrics - Instructions regarding - Central Excise - 32/87

Applicability of rule 49A in respect of exempted fabrics - Instructions regarding Circular No. 32/87 Dated 14-8-1987 [From F. No. 22/10/87-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Applicability of rule 49A in respect of exempted fabrics - Instructions regarding. Doubts have been raised by some Collectors as to whether the benefit of rule 49A can be extended even in respect of yarn used in the manufacture of fully exempted fabrics. 2. The matter have been examined by the Board in consultation with the Law Ministry. It is observed that rule 49A is merely a amenity available to an assessee to pay duty on yarn at the fabric stage, alongwith interest. This facility is not dependent upon the dutiable character of the fabrics. In other words the benefit of rule 49A may be allowed even on those cases when yarn is used in the manufacture of fully exempted cotton fabrics.