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TMI Blog2006 (7) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of duty subject to the condition that the said fabrics are made from textile yarn on which the appropriate duty of excise has been paid and no credit of duty paid on inputs or capital goods has been taken under Rule 3 or Rule 11 of Cenvat Credit Rules, 2002. However, since they were not in a position to ascertain the variety and quantity of yarn going into the manufacture of export production of grey fabrics and grey fabrics meant for home consumption they were not in a position to pay duty on yarn at spindle stage and therefore they opted to pay yarn duty at the time of clearance of grey fabrics for home consumption along with interest thereon at the rate prescribed under Sec. 11AB of Central Excise Act, 1944 read with Rule 8(3) of Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained in T.N. No. 40/96 holding that these instructions are still followed under the provisions of Rule 33 of the Central Excise Rules, 2002. Rule 33 states that "any notification, circular, instruction, standing order, trade notice or other order issued under Central Excise (No. 2) Rules, 2001 by the Board, Chief Commissioner or the Commissioner and in force as on the 28th day of Feb. '02 shall to the extent it is relevant and consistent with these rules be deemed to be valid under the corresponding provision of these rules." Since the present Central Excise Rules, 2002 do not contain the corresponding provision equivalent to erstwhile Rule 49A of Central Excise Rules, 1944 under which duty payment of yarn along with interest on grey fab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2001 read with Rule 33 of Central Excise Rules, 2002. Rule 32 validates all the trade notices issued under Central Excise Rules, 1944 and in force as on 30-6-2001 and Rule 33 of Central Excise Rules, 2002 validates all the trade notices issued under Central Excise (No.2) Rules, 2001 and in force on 28-2-2002. Therefore no fault can be found in paying the duty at fabrics stage and reversing the credit. In support he cited the Tribunal decision in their own case vide Order Nos. A/966-967/WZB/2005/C-III, dated 27-6-2005, CEGAT decision in Standard Industries Ltd. case vide Order No. C-II/1700/02 WZB, dated 24-5-2002 [2002 (146) E.L.T. 76 (Tribunal)] wherein in similar circumstances it was held that in view of the difficulty in paying duty at t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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