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2019 (6) TMI 259 - AT - Central ExciseBar on utilization of CENVAT credit - vires of Rule 8(3A) of Central Excise Rules, 2002 - HELD THAT:- Hon’ble Gujarat High court in the said case of ADVANCE SURFACTANTS INDIA LTD VERSUS UNION OF INDIA [2017 (8) TMI 594 - GUJARAT HIGH COURT] has held that there is no one to one co-relation between raw material and finished goods and therefore to restrict utilization of credit earned up to the last date of duty payment is contrary to the principals of Cenvat Credit Rules and therefore the Hon’ble High Court has held that Sub-Rule (4) of Rule 3 of Cenvat Credit Rules, 2004 is ultra vires. The default remained only from 05 March, 2008 to 12 March, 2008 - further during the period from 05 March, 2008 to 12 March, 2008 there was no payment of central excise duty through debit of cenvat credit. Therefore, in both the appeals there were no grounds to invoke provisions of Rule 8(3A) of Central Excise Rules. Appellants shall be entitled to refund of ₹ 1,80,764/- paid in cash on 07 October, 2008 along with applicable interest - appeal allowed.
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