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2023 (8) TMI 657 - CESTAT CHANDIGARHConstitutional Validity of Sub-Rule 3A of Rule 8 of the Central Excise Rules, 2002 - Recovery of short paid Central Excise duty alongwith interest and penalty - HELD THAT:- This issue is no more res-integra as the various Hon’ble High Courts have held that the provisions of Sub-Rule 3A of Rule 8 of the Central Excise Rules, 2002 are unconstitutional. In this regard, reliance upon the Jurisdictional High Court of Punjab and Haryana in the case of M/S SANDLEY INDUSTRIES VERSUS UNION OF INDIA AND OTHERS [2015 (10) TMI 2455 - PUNJAB & HARYANA HIGH COURT] wherein it has been held that we hold that Rule 8(3A) of the 2002 Rules to the extent it contains the words ‘without utilizing the Cenvat credit’ is held to be arbitrary and unreasonable and is struck down. In other words, the unamended Rule 8(3A) of 2002 Rules whereby the benefit of Cenvat credit for all the period till the actual payment was made, stands disallowed in the event of a minor default also is arbitrary and unreasonable. Thus, there is no infirmity in the impugned order which is upheld by dismissing the appeal of the Revenue.
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