2024 (11) TMI 546 - AT - Central Excise

Denial of utilization of Cenvat Credit for payment of duty during the defaulted period in terms of Rule 8(3A) of Central Excise Rules, 2002 - HELD THAT - Considering the fact that the provision of Rule 8(3A) of Central Excise Rule, 2002 has been declared ultra vires by the Hon ble Gujrat High Court in the case of Indsur Global Ltd. 2014 (12) TMI 585 - GUJARAT HIGH COURT and Hon ble Punjab Haryana High Court in the case of M/S SANDLEY INDUSTRIES VERSUS UNION OF INDIA AND OTHERS 2015 (10) TMI 2455 - PUNJAB HARYANA HIGH COURT . Therefore, the Cenvat Credit cannot be denied to the appellant for utilization of payment of duty during the defaulted period. In that circumstances the demand against the appellant for recovery of Cenvat Credit during the defaulted period is not sustainable and consequently, no penalty is imposable on the appellant. The impugned order is set aside - appeal allowed.

Summary

The appellant appealed against a demand raised for denying utilization of Cenvat Credit for duty payment during a defaulted period. The appellant's appeal was allowed as the provision of Rule 8(3A) was declared ultra vires by the Hon'ble Gujrat High Court and the Hon'ble Punjab & Haryana High Court. Cenvat Credit cannot be denied to the appellant for duty payment during the defaulted period, leading to the impugned order being set aside and the appeal being allowed.