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2019 (2) TMI 1233 - AT - Central ExciseDefault in payment of Central Excise duty - applicability of Rule 8 (3A) of the Central Excise Rule, 2002 - Revenue was of the view that during the period of default, the appellant was required to make payment of Central Excise duty on consignment to consignment basis under Rule 8 (3A) without utilizing the cenvat credit, which has not been complied with - Held that - The Jurisdictional High Court at Calcutta, in the case of Goyal MG Gases Pvt. Ltd has followed the decision of the Gujarat High Court in Indsur global Ltd. V. Union of India 2014 (12) TMI 585 - GUJARAT HIGH COURT and has held the portion of rule 8 (3A) as ultra vires. There is no bar in making use of the accumulated Cenvat Credit in making payment of Central Excise Duty even during the default period - appeal allowed - decided in favor of appellant.
Issues:
Adjournment request for the appellant, applicability of Rule 8(3A) of the Central Excise Rules, 2002. Adjournment Request for the Appellant: The appellant requested an adjournment, but it was declined as the appeal was considered to be in a narrow compass. The appeal was taken up for disposal with the consent of the Revenue's representative. Applicability of Rule 8(3A) of the Central Excise Rules, 2002: The appellant was alleged to have contravened Rules 4 & 8 of the Central Excise Rules, 2002, leading to a demand for Central Excise duty. The appellant argued that Rule 8(3A) had been struck down by various High Courts as ultra vires, citing relevant case laws. The Advocate contended that the accumulated Cenvat Credit could be used for Central Excise Duty payment even during a default period. The Revenue acknowledged the High Courts' decisions but highlighted that the Supreme Court had admitted Special Leave Petitions (SLPs) challenging those decisions and stayed their operation. The Tribunal analyzed the High Courts' decisions and noted that the Jurisdictional High Court had held Rule 8(3A) as ultra vires based on the Gujarat High Court's decision. Consequently, the Tribunal held that there was no restriction on utilizing accumulated Cenvat Credit during a default period for Central Excise Duty payment. Thus, the impugned order was set aside, and the appeal was allowed.
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