https://www.taxtmi.com/caselaws?id=327765 CESTAT Allahabad held that Rule 8(3A), which barred utilisation of valid Cenvat credit and required duty payment only in cash after default, was unsustainable where the assessee had cleared the default by paying duty and interest. Applying High Court authority and the constitutional standards of reasonableness under Articles 14 and 19(1)(g), the Tribunal treated the restriction as arbitrary and disproportionate. It recognised the right to use legitimately earned credit as a substantive entitlement that could not be taken away by a procedural payment mechanism. The demand and penalty founded on the restriction were set aside, and consequential relief was granted to the assessee. en-us Tue, 01 Mar 2016 00:00:00 +0530 Wed, 18 May 2016 22:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=327765 CESTAT Allahabad held that Rule 8(3A), which barred utilisation of valid Cenvat credit and required duty payment only in cash after default, was unsustainable where the assessee had cleared the default by paying duty and interest. Applying High Court authority and the constitutional standards of reasonableness under Articles 14 and 19(1)(g), the Tribunal treated the restriction as arbitrary and disproportionate. It recognised the right to use legitimately earned credit as a substantive entitlement that could not be taken away by a procedural payment mechanism. The demand and penalty founded on the restriction were set aside, and consequential relief was granted to the assessee. Case-Laws Central Excise Tue, 01 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=327765