TMI Blog2016 (10) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... se Indsur Global Ltd. vs. Union of India [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. I find that there is no justification to proceed with the demand made under Rule 8 (3A) by the authorities below in as much as the Rule itself has been stuck down as unconstitutional - appeal allowed - facility of using Cenvat credit for making payment of excise duty cannot be denied - decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t did not receive any favourable consideration. Hence the present appeal before the Tribunal. 2. The appellant submits that they failed to discharge a part of the duty payable in the month of August 2008 on account of financial hardship and the same stands paid by PLA on 08/11/08 alongwith interest. The demand to the extent of around ₹ 12 lakhs raised by the Revenue is towards duty amounts already paid by availing the Cenvat credit. The demand has been raised consequent upon the provisions of Rule 8 (3A) in which it has been provided that once the assessee defaults in payment of excise duty, after a period of 30 days, the facility of using Cenvat credit for making payment of excise duty will not be available to him. 3. The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows :- If the assessee defaults in payment of duty beyond 30 (Thirty) days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in sub-rule (1) and sub-rule (4) of Cenvat Credit Rules, 2004, the assessee shall pay Excise duty for each consignment at the time of removal, without utilizing the Cenvat Credit till the date the assessee pays the outstanding amount including interest thereon; and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow . 7. On fact, there is no dispute that a part of the duty payable for the month of August 2008 was not paid by the appellant with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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