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TMI Blog1986 (5) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... 77/84. As per the application, the points which are required to be referred to the High Court for clarification, are: (1) Payment of interest on yarn duty under Rule 49A irrespective of the fabrics being cleared for home consumption or for export, (2) The interest leviable under Rule 49A on the amount of duty on yarn being different from the duty payable under Section 3 of the Central Excises and Salt Act, 1944 and (3) The Department s right to recover interest under Rule 49A irrespective of whether the fabrics are cleared for home consumption or for export. 2. Appearing on behalf of the Collector, the learned SDR drew our attention to the points for reference to the High Court as contained in para 8 of the Collector s applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assistant Collector in the office of the Collector of Central Excise, Bombay had calculated the amount of interest leviable on the amounts of Central Excise duty leviable on the yarn and these had been debited to the Bond account of the appellant maintained for the purposes of Rule 13. The interest charges leviable for optees under Rule 49A and they were not waived. The Tribunal s order that when the duty leviable was nil the interest leviable was also nil was not correct. There were no specific provisions for waiving the interest amount in the law and hence the interest amount was payable under Rule 49A. This was different from the duty payable under Section 3 as submitted already. Both the amounts of duty and interest were debited separ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al had considered these aspects and decided that where no duty on yarn was payable, there was no question of paying interest on the amount of duty leviable. Dr. Jois further submitted that the Collector s application under Section 35G was misplaced as the Collector s application raised a question regarding the rate of duty. Rule 49A prescribes the rates of interest leviable. Therefore, there could not be any reference to the High Court in such a case. Dr. Jois relied in this behalf on the decisions reported in 1985 (20) E.L.T. 368; 1984 (16) E.L.T. 254 and 640- and 1984 E.L.T. 669 and 1984 (18) E.L.T. 449. Dr. Jois submitted that the Tribunal s order was final subject to the appeal to the Supreme Court. Hence he argued that the reference a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector and not based on the interpretation of Rule 49A as contained in the Tribunal s decision. The learned SDR has, however, made a valiant attempt to salvage the application and to provide some substance to it during the course of oral arguments where none existed in the written application. Therefore taking both together, it is seen that the Collector had interpreted the Tribunal s order as meaning that interest leviable under Section 49A was a part of duty leviable under Section 3. Since the levy of duty on yarn was obviated on account of export of the fabrics in bond under Rule 13, the Collector has presumed that the Tribunal treated interest as part of duty and came to the conclusion that the interest leviable could also not be cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one mentioned above. Besides, there is no doubt that interest is not a part of duty leviable under Section 3. From this point of view, the analogy of M/s Jaipur Udyog Ltd., Swai Madhopur, Rajasthan was pointed out to the learned representative of the Collector. But he could not offer any comments in this behalf. It is seen that under Sub-rule (3) of Rule 49, the Government has the power to permit clearance of the goods without payment of duty or only on part payment of duty and can prescribe levy of interest on the amount of duty which may be in balance. In pursuance of these provisions of law, the Government issued a Notification No. 207/76 dated 25-6-1976 as amended permitting M/s Jaipur Udyog Ltd., Swai Madhopur, Rajasthan to defer payme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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