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2014 (12) TMI 656 - HC - Central ExciseDemand of interest for delayed payment of tax - Payment of interest through CENVAT Credit - Subrule (3A) of Rule 8 of the Central Excise Rules, 2002 - Held that:- When the entire showcause notice, order in original and appellate order are based on Subrule (3A) of Rule 8, the portion of which came to be struck down in [2014 (12) TMI 585 - GUJARAT HIGH COURT], such orders cannot survive. We have narrated facts only to demonstrate that the facts of the present case squarely fall within the portion of the Rule which was declared as ultra vires by the Court. It was only because the petitioner paid interest of barely about ₹ 12,000/through Cenvat Credit instead of paying it in cash, their all subsequent clearances were stigmatized. This was solely relying on the portion of Subrule (3A) of Rule 8, which required that the future clearances of a defaulter must be without utilization of the Cenvat Credit. - Decided in favour of assessee.
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