Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

M/s. Kalson Automotives Pvt. Limited Versus Commissioner of Central Excise & ST, Faridabad

2017 (10) TMI 551 - CESTAT CHANDIGARH

Demand of interest and penalty - payment of duty by utilization of CENVAT credit account - Rule 8(3A) of Cenvat Excise Rules, 2002 - Held that: - although the decision in the case Indsur Global Limited [2014 (12) TMI 585 - GUJARAT HIGH COURT] has been stayed by the Hon’ble Apex Court in the case of Union of India Versus Indsur Global Ltd. [2014 (11) TMI 1101 - SUPREME COURT], but the said decision, unless until decided by the Hon’ble Apex Court, holds the field as on date and the Court is not pe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppellant is in appeal against the impugned order wherein penalty of ₹ 10 Lakh has been imposed on the appellant and interest has been demanded for the intervening period wherever they paid the duty by utilising Cenvat credit account for payment of duty. 2. Brief facts of the case are that the appellant could not paid the duty during the period from Sep 2008 to June 2009 in time and the same was paid along with interest in the month of August 2009, partly by utilising Cenvat account and par .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he appellant is before me. 3. Ld. Consultant for the appellant submits that as the provisions of Rule 8(3A) of Central Excise Rules, 2002 has been declared ultra-virus by the Hon'ble Gujarat High Court in the case of Indsur Global Limited Vs. UOI - 2014 (310) ELT 833 (Guj.). Therefore, for the defaulted period, the demand of interest and imposition of penalty is against the verdict of law and therefore, the impugned order is to be set-aside. 4. On the other hand, ld. AR opposed the contentio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lobal Limited supra. The decision of the Hon'ble Gujarat High Court has been stayed by the Hon ble Apex Court as referred supra. Further, the issue came up before the Hon'ble Delhi High Court in the case of Space Telelink Limited in Central Excise Appeal No. 5 of 2016 and the Hon'ble High Court vide order dated 08.03.2017 observed as under:- 5. The Gujarat High Court took notice of the Revenue's contention with regard to the justification of Rule 8(3A). It was of the opinion that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

le, being irrational and arbitrary and therefore, violative of Article 14 of the constitution. It prevents him from availing credit of duty already paid by him. The reasoning of the Gujarat High Court in Indsur Global Limited Vs. Union of India - 2011 (310) ELT 833, quoted above, was upheld by A.R. Metallurgical Pvt. Limited Vs. CCE, Chennai - 2015 (322) ELT 49 - (Mad.); Sandley Industries Vs. Union of India - 2016 (326) 256 (P&H) and ATV Projects India Limited Vs. Union of India - 2016 (341 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

production of an excisable product immediately it makes the requisite declaration and obtains an acknowledgment thereof. It is entitled to use the credit at any time thereafter when making payment of excise duty on the excisable product. There is no provision in the Rules which provides for a reversal of the credit by the excise authorities except where it has been illegally or irregularly taken, in which event it stands cancelled or, if utilised, has to be paid for. We are here really concerned .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hich the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available. 18. It is, therefore, that in the case of Eicher Motors Limited Vs. Union of India (1999) 106 ELT 3, (1999 AIR SCW 563 - AIR 1999 SC 892) this Court said that a credit under the Modvat scheme was as good as take paid. 7. The Revenue has argued that the Supreme Court has entertained a Special Leave Petition against the judgment of the Gujarat and M .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ration of an order Quashing of an order results in the restoration of the position as it stood on the date of the passing of the order which has been quashed. The stay of operation of an order does not, however, lead to such a result. It only means that the order which has been stayed would not be operative from the date of the passing of the stay order and it does not mean that the said order has been wiped out from existence. This means that if an order passed by the Appellate Authority is qua .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as it exists, it cannot be said that the appeal which has been disposed of by the said order has not been disposed of and is still pending. We are, therefore, of the opinion that the passing of the interim order dated February 21, 1991 by the Delhi High Court staying the operation of the order of the Appellate Authority dated January 7, 1991 does not have the effect of reviving the appeal which had been dismissed by the Appellate Authority by its order dated January 7, 1991 and it cannot be said .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version