9911796707
TMI Blog2025 (1) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of Constitution being unreasonable, irrational, arbitrary and violative.' - in view of the above position in law as settled by the Honourable Constitutional Courts, which is being consistently followed by this Bench, there is no merit in the confirmation of demands made in the impugned order and hence the impugned order cannot sustain. Interest due on the duty amount paid by the Appellant - HELD THAT:- While the impugned order has confirmed the demand of additional payment towards interest due after considering the amount paid by the Appellant, on the basis of the report dated 06.04.2015 of the Preventive Unit, Puducherry; in light of the affidavit filed by the Appellant duly supported by the chartered accountant s certificate, reiter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 terms of the Cenvat Credit Rules, 2004. 3. As per Rule 8 of the Central Excise Rules, 2002 as it existed in the material period involved in this case, an assessee was required to pay the duty by the prescribed due dates and in the event of any default thereof, the assessee would be required to pay the outstanding amount along with appropriate interest ari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 from the appellant under Rule 8(3A) read with Section 11A(4) of the Act along with appropriate interest under Section 11AA and proposing to impose penalty under Section 11AC of the Act read with Rule 25 of the Rules. Appellant replied to the SCN accepting the delay in payment of duty and requested to condone the delay and not impose any penalty as they had clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jarat 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, Chennai as well as in Final Order No 41415- 41416/2024 dated 07.11.2024 in the case of M/s. SAS Autocom Engineers India Pvt Ltd, Tiruvallur v Commissioner of GST and Central Excise, wherein the consequential demands alleging violation of Rule 8(3A) have been held unsustainable and set aside. Ld. Advocate has submitted copies of the aforementioned judgements along with othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.)] struck down the condition in Rule 8(3A) for payment of duty without utilizing the CENVAT credit as unconstitutional and invalid.This judgment of the Hon ble Gujarat High Court has been followed by other High Courts in series of cases as follows: - i. Shreeji Surface Coatings Pvt. Ltd. Vs Union of India [2015 (320) ELT 764 (Guj.)]. ii. Malladi Drugs and Pharmaceuticals Limited vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 been arrived at. The effect is that the stay order having merged with the order of settlement, stands vacated. The decision rendered by the Hon ble High Courts of Gujarat and Madras in the above cases would revive and be in force as a Precedent. 12. After appreciating the facts and following the above decisions, we are of the considered opinion that the demand raised alleging violation of Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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