https://www.taxtmi.com/caselaws?id=254313 The Gujarat High Court held that the words in Rule 8(3A) of the Central Excise Rules, 2002 requiring a defaulter to pay duty on subsequent clearances without using Cenvat credit were unconstitutional. Applying the tests of reasonableness and proportionality under Articles 14 and 19(1)(g), the Court found the restriction arbitrary, excessive, and disproportionate because it treated every default alike, regardless of whether the default was wilful or caused by financial difficulty. As the show-cause notice and consequential adjudication and appellate orders rested entirely on that invalid condition, they could not survive and were set aside. en-us Thu, 04 Dec 2014 00:00:00 +0530 Thu, 20 Aug 2015 14:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=254313 The Gujarat High Court held that the words in Rule 8(3A) of the Central Excise Rules, 2002 requiring a defaulter to pay duty on subsequent clearances without using Cenvat credit were unconstitutional. Applying the tests of reasonableness and proportionality under Articles 14 and 19(1)(g), the Court found the restriction arbitrary, excessive, and disproportionate because it treated every default alike, regardless of whether the default was wilful or caused by financial difficulty. As the show-cause notice and consequential adjudication and appellate orders rested entirely on that invalid condition, they could not survive and were set aside. Case-Laws Central Excise Thu, 04 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=254313