https://www.taxtmi.com/caselaws?id=437488 Rule 8(3A) of the Cenvat Credit Rules, 2004, requiring defaulting assessees to pay duty without using CENVAT credit, was treated as unconstitutional following Gujarat HC in Indsur Global Ltd. The restriction was found arbitrary and disproportionate because it applied uniformly irrespective of the nature, extent, or reason for default, and it denied use of already earned credit. The provision was held to violate Articles 14 and 19(1)(g) of the Constitution. As a result, demand, confiscation, and penalty proposed solely on that basis could not be sustained, and further proceedings dropped on that ground were not liable to revival. en-us Tue, 28 Mar 2023 00:00:00 +0530 Sun, 07 May 2023 21:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437488 Rule 8(3A) of the Cenvat Credit Rules, 2004, requiring defaulting assessees to pay duty without using CENVAT credit, was treated as unconstitutional following Gujarat HC in Indsur Global Ltd. The restriction was found arbitrary and disproportionate because it applied uniformly irrespective of the nature, extent, or reason for default, and it denied use of already earned credit. The provision was held to violate Articles 14 and 19(1)(g) of the Constitution. As a result, demand, confiscation, and penalty proposed solely on that basis could not be sustained, and further proceedings dropped on that ground were not liable to revival. Case-Laws Central Excise Tue, 28 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437488