9911796707
TMI Blog2025 (1) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Act 1944 (Act in short), appropriated the sum already paid with directions to pay remaining duty amount in cash, ordered recovery of interest of the balance interest due on the amount in cash already paid, confirmed appropriate amount of interest on the remaining duty under Section 11AA of the Act, and further imposed a penalty under Section 11AC(1)(b) of the Act read with Rule 25 of the Central Excise Rules, 2002 (Rules in short). 2. Brief facts are that the appellant namely M/s Astalife are the manufacturers of P&P Medicaments classifiable under Chapter sub Heading No. 3004 of the First schedule of Central Excise Tariff Act, 1985, and have availed Cenvat Credit on inputs/Capital Goods/Input Services received by them, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 to January. 2013, they had totally failed to pay the duty liability self-determined by them in the returns/invoices and even Cenvat credit was not utilized in this period and had also not filed Monthly E.R.1 Returns with the Department during this period. 5. Finding that by committing the afore said acts in contravention of the provisions of rule 8[3A] of Central Excise Rules, 2002, the clearances of the said goods effected during the period were deemed to have been made without payment of duty and that the Appellant had rendered themselves liable for the consequences and penalties, show cause notice (SCN in short) was issued inter-alia demanding duty of Rs.3,69,42,602/- for the period April 2011 to January 2013 liable to be recovered fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lobal Ltd v Union of India, in judgement C/SCA/3344/2014 dated 26-27/11/2014. He further submitted that the jurisdictional High Court of Madras has, in the Writ petition No.2506 of 2011 filed by M/s. Malladi Drugs & Pharmaceuticals Ltd, with Union of India as respondents and challenging the constitutional validity of Rule 8(3A) of the rules ibid, agreed with the Gujarat High Court decision in Indsur Global ibid and set aside the proceedings initiated by the Department invoking the said rule. It is his submission that the aforementioned decisions stood followed by this Bench of the Tribunal vide Final Order Nos.40836 to 40840/2024 dated 10-07-2024 in the case of Commissioner of GST & Central Excise, Chennai v. Burgeon Pharmaceuticals, Chenna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder in original, for violation of Rule 8(3A) is sustainable in law. 10. We find that this bench has in the case of M/s. SAS Autocom Engineers India Pvt Ltd, Tiruvallur v Commissioner of GST and Central Excise, cited supra, followed the ratio decidendi laid down in the aforementioned Judgements of the Honourable High Courts of Gujarat and Madras and has held as under: "8. The issue as to whether the Assessee can utilise the CENVAT credit toward payment of duty when in default is no more res integra and many judicial authorities have held that the provision of Rule 8(3A) of Central Excise Rules, 2002 as ultravires to the Main Act. The Hon'ble Gujarat High Court in the case of M/s. Indsur Global Ltd. Vs. UOI [2014 (310) ELT 833 (Guj.)] str ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Further, the Tribunal in the case of Indus Tropics Ltd. Vs. Commissioner of Central Excise & Service Tax, Rajkot [2023 (3) TMI 950-CESTAT AHMEDABAD] has followed the decisions of various High Court to set aside the demand alleging violation of Rule 8(3A) of Central Excise Rules, 2002. 11. We find that the Department had preferred an appeal against the decision passed in Indsur Global Ltd. (supra) before the Hon'ble Supreme Court. The Ld. Counsel for the appellant has submitted before us that the appeal filed by the Department in Indsur Global Ltd. (supra) has been disposed by the Hon'ble Apex Court as per decision dated 29.07.2024. The appeal was referred to the Lok Adalat proceedings before the Hon'ble Supreme Court and settlement has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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