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2021 (9) TMI 973 - AT - Central ExciseCENVAT Credit - restrictions in using the cenvat credit for payment of duty for the clearances - contravention of Rule 8(3A) read with Rule 4(1), 8(1), 8(3) of Central Excise Rules - Applicability of Rule 25 of Central Excise Rules - HELD THAT:- There is a conflict in the provisions of Rule 8(3) and Rule 8(3A), prior to its substitution w.e.f. 11.07.2014. Rule 8(3) provides for levy of interest at the specified rates for late deposit of tax plus duty for the period of default. Thereafter, again Rule 8(3A) provides for denial of facility of paying duty through cenvat credit, and further deems the clearances so made by using cenvat credit as to have been cleared without payment of duty. Pursuant to quashing of Rule 8(3A) by the Hon’ble Gujarat High Court and other High Courts, inspite of filing of appeal by the Revenue before the Hon’ble Supreme Court, the Government have appreciated the anomaly in the Rules, and have chosen to substitute Rule 8(3A), which provides for payment of interest @ 1% p.m. on such amount of duty not paid, after one month of the due date, for each month and part thereof to be calculated from the due date, for the period during which such default continues - As per Rules of interpretation, a procedural law is always deemed to be retrospective, unless the same is categorically or specifically made prospective. Thus, the substituted Rule 8(3A) will have retrospective effect, from the date Central Excise Rules, 2002 came into effect. Applicability of Rule 25 of Central Excise Rules - HELD THAT:- The provisions of Rule 25 of Central Excise Rules are not attracted, as admittedly appellant have issued invoice for clearance, and transaction is recorded in books of account. Appeal allowed - decided in favor of appellant.
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