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2019 (2) TMI 750 - AT - Central ExciseImposition of Penalty u/r 25(1)(a) of Central Excise Rules - Default in payment of central excise duty - amount of duty not paid within 30 days from the due date as required - Rule 8 (3A) of Central Excise Rules, 2002 - Held that:- Hon’ble High Court of Gujarat in the case of Indsur Global Limited vs. Union of India [2014 (12) TMI 585 - GUJARAT HIGH COURT] has struck down this Rule and the judgment of Hon’ble High Court of Gujarat has been stayed by Hon’ble Supreme Court. The Hon’ble High Court of Delhi in the case of Space Telelink Limited [2017 (3) TMI 1599 - DELHI HIGH COURT] held that the ratio of the judgment of Hon’ble High Court of Gujarat would still apply notwithstanding the fact that it has been stayed by Hon’ble Apex Court. It has been held that only the operation of the judgment is stayed and not the underlying basis of the judgment itself - the penalty imposed under Rule 25(1)(a) of Central Excise Rules for contravention of Rule 8(3A) is liable to be set aside. Penalty of ₹ 2,000/- imposed for availing the CENVAT Credit twice on the same invoice - Held that:- The amount involved is small but find that the penalty is equally small and commensurate with the violation of CENVAT Credit Rules, 2004 - demand upheld. Appeal allowed in part.
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