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2019 (11) TMI 235 - AT - Central ExciseDefault in making payment of monthly liability of duty - Wrongful utilization of CENVAT Credit - contravention of Rule 8(3A) of Central Excise Rules, 2002 - period i.e. July 2002 to June 2011 - whether for the default in making payment of monthly liability of duty during the period May 2008 to September 2008, the Appellant would be debarred from utilising CENVAT Credit for the period thereafter i.e. from July 2010 to June 2011? HELD THAT:- The issue of utilisation of CENVAT Credit post default in monthly payment of duty under Rule 8(3A) of Central Excise Rules, 2002 is no more res integra. The relevant portion, which debars utilisation of such credit, has been struck down by the Hon’ble Gujarat High Court in Indsur Global case [2014 (12) TMI 585 - GUJARAT HIGH COURT] where it was held that Condition contained in sub-rule (3A) of rule 8 for payment of duty without utilizing the cenvat credit till an assessee pays the outstanding amount including interest is declared unconstitutional. Therefore, the portion "without utilizing the cenvat credit" of sub-rule (3A) of rule 8 of the Central Excise Rules, 2002, shall be rendered invalid. Appeal allowed - decided in favor of appellant.
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