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2023 (5) TMI 295 - AT - Central ExciseUtilizing Cenvat Credit - assessee in default in payment of duty - Constitutional validity of Rule 8(3A) of CER - Penalty under Rule 25 of the Central Excise Rules, 2002 - removal of goods without payment of duty - HELD THAT:- The issue is squarely covered by the decisions of various High Courts. Hon’ble Gujarat High Court in the case of INDSUR GLOBAL LTD. VERSUS UNION OF INDIA & 2 [2014 (12) TMI 585 - GUJARAT HIGH COURT] quashed the provisions of Rule 8(3A) of the Central Excise Rules, 2002 itself, holding the 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. This decision has been followed by Hon’ble Bombay High Court and Hon’ble Punjab & Haryana High Court and various other High Courts. There are no merits in the present appeal - appeal of Revenue dismissed.
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