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TMI Blog1986 (8) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount of duty on cotton yarn consumed in the manufacture of cotton fabrics used in the manufacture of cotton napkins which were ultimately exported out of India. In the appeal, the Collector of Central Excise, Baroda, has contended that in Section 3 of the Khadi and Other Handloom Industries Development (Additional Excise Duty on Cloth) Act, 1953, there is no provision for refund of duty. The proviso under the Section contemplates exemption from the levy of the handloom cess, but not the refund once the cess is collected. As regards the refund of the interest on the duty on the yarn used in the manufacture of fabrics which were further converted into napkins, the appeal states that the deferment of the levy of duty on the yarn is a conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the duty of excise chargeable on cloth under the Central Excises and Salt Act, 1944 and it is to be levied and collected in the same manner as the duty of excise on cloth levied and collected under the Act. Therefore it is sub-section (2) of Section 3 which empowers the Asstt. Collector to levy and collect the handloom cess. In other words under these provisions the machinery provisions of the Central Excises and Salt Act, 1944 have been applied to the collection of the handloom cess which is described as additional duty on cloth. Therefore the refund of this duty popularly known as the handloom cess can be claimed as provided under Section 11B of the Central Excises and Salt Act, 1944; provided the same is refundable. It was being admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 1944. The question, therefore, arises is whether the claim for the refund of the same was legally valid. Under Rule 12A the rebate of duty on goods manufactured and exported from India in respect of any material used in the manufacture of such goods is permissible provided the Central Government allows such a rebate by issue of a Notification. It is no one s case that Rule 12A does not apply to the napkins covered by the Collector s appeal. But the Collector has relied on the advice of the Ministry of Law to the effect that under Rule 12 (Rule 12A being analogous to Rule 12) the rebate can be granted of the duty of excise. The duty of excise means duty as leviable under Section 3 and not the Rules. Since interest is not a duty for this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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