9911796707
TMI Blog2016 (8) TMI 533X X X X Extracts X X X X X X X X Extracts X X X X ..... ay the duty within the prescribed due date during the months of September, 2006, October, 2006, December, 2006 and May, 2007. The duty along with interest was remitted by the appellant with different days of delay. As the delay in remittance was beyond 30 days as per sub rule (3) of Rule (8) the appellant has to pay the excise duty for each consignment at the time of removal, without utilizing the Cenvat Credit till the date of payment of outstanding amount including interest. 3. Undisputedly the defaulted duty along with interest for the period September, 2006, October, 2006 and December, 2006 was paid on 20-03-2007 and the defaulted duty along with interest for the month of May, 2007 was paid by appellants on 06-07-2007. The delaye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 8 which restricted the use of Cenvat Credit during the defaulted period, has been struck down as unconstitutional by the High Court of Gujarat in Indsur Global Ltd Vs UOI 2014(310) ELT 833( Guj). The Hon ble High Court in the said case observed as under: "22. Sub-rule (3) of Rule 8 attaches a liability of paying interst on delayed payment of excise duty. Any assessee who fails to pay duty by the due date would be liable toi pay outstanding amount with interest at the rate specified by the Central Government under a notification. The period of computation of interest would be the first day after the due date till date of actual payment of the outstanding amount. 23. As noted, the Cenvat Credit rules, 2004 permit an assessee liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, to insist that he must pay such duty without utilizing Cenvat credit which is nothing but the duty on various inputs already paid by him would be a restriction so harsh and out of proportion to the aim sought to be achieved, the same must be held to be wholly arbitrary and unreasonable. We may recall, the delegated legislature in its wisdom now dismantled this entire mechanism and instead has provided for penalty at the rate of 1% per month on delayed payment of duty. 36. In the result, the 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 Cenvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
