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2021 (4) TMI 625 - AT - Service TaxRestriction on utilisation of CENVAT Credit - recovery of arrears - vires of Rule 8(3A) of CCR - HELD THAT:- The demand in the instant case has been raised for contravention of Rule 8(3A) ibid restricting utilization of CENVAT Credit during the period of default which provision has been declared ultra vires/invalid by Court, hence, the demand cannot be sustained and the appeal, thus, succeed on this count. In the instant case no show cause notice U/s 11A of the Central Excise Act, 1944/Rule 14 of the CENVAT Credit Rules, 2004 have been issued by the department for recovery of the disputed demand which course is clearly impermissible in law in view of the judgments in the case of SANGHI POLYESTERS LTD. VERSUS SUPERINTENDENT OF C. EX., HYDERABAD [2009 (11) TMI 284 - ANDHRA PRADESH HIGH COURT], M/S SHREEMATHA PRECISION COMPONENTS, M/S JINALLOY STEEL INDUSTRIES VERSUS THE COMMISSIONER OF CENTRAL EXCISE, THE SUPERINTENDENT OF CENTRAL EXCISE [2015 (9) TMI 351 - KARNATAKA HIGH COURT], and UNIROLS AIRTEX REP. BY ITS PROPX:MEENA BOOPALAN VERSUS THE ASSISTANT COMMISSIONER OF CENTRAL EXCISE [2013 (8) TMI 614 - MADRAS HIGH COURT]. Show Cause Notice under section 11A of the Act read with Rule 14 of the CENVAT Credit Rules, 2004 is the foundation of any proceeding and thus mandatory for demand of duty, penalty and no demand can be confirmed without issuance of Show Cause Notice. Appeal allowed - decided in favor of appellant.
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