RULE 8(3)A OF CENTRAL EXCISE RULE DEMAND

[Pushkar Gupta]

Dear Sir

Our Client has received a demand order from AC of Central Excise under Rule 8(3)A of central excise Rule 2002, under two different order of ₹ 4,60,257 and ₹ 368678/- on account of dis-allowance of cenvat credit after 30 days in pursuance of show cause notice. we have quoted case law MEENAKSHI ASSOCIATES Versus COMMISSIONER OF CENTRAL EXCISE, NOIDA -  2012 (6) TMI 275 - CESTAT, NEW DELHI AND BABA VISWAKARMA ENGG. CO. (P) LTD. Versus COMMR. OF C. EX., GHAZIABAD -  2012 (9) TMI 814 - CESTAT, NEW DELHI for relief in reply of show cause notice. Assistant commissioner has not consider it and had not provided other opportunity of being heard and sent demand order. It is requested that advise on following points.

1. What is remedy for above demand order, and whether it is beneficial to go for a appeal since in current scenario, disallowance of cenvat credit after 30 days is not applicable.
2. It has been deposited of ₹ 460257 after cause notice and subsequently it has been used against duty liability for any other months. whether it is required to deposit again or any relief is available.
3. Please suggest

thanks in advance.

Pushkar Gupta

AI Summary

Cenvat credit disallowance - appeal with Commissioner (Appeals) recommended to contest Rule 8(3A) demands and related interest.
Demand notices under Rule 8(3A) of the Central Excise Rules were issued for alleged post 30 day Cenvat credit avails; one demand was deposited and later set off against subsequent duties while interest on disallowed credit was not paid. The appropriate procedural remedy is to file an appeal with the Commissioner (Appeals) after reviewing the show cause notices and adjudication orders, noting limited prospects for penalty relief and the need to address the consequences of utilizing the deposited sum.