https://www.taxtmi.com/caselaws?id=762427 CESTAT Chennai allowed the appeal challenging demand for default in timely duty payment under Rule 8(3A) of Central Excise Rules, 2002. The tribunal held that Rule 8(3A) prohibiting CENVAT credit utilization for duty payment is ultra vires the main Act, following Gujarat HC's decision in Indsur Global Ltd. case. SC's recent disposal of the department's appeal through Lok Adalat settlement revived the HC precedent declaring the rule unconstitutional. Consequently, the demand for violation of Rule 8(3A) was unsustainable, and extended limitation period and penalties were also set aside. en-us Wed, 27 Nov 2024 00:00:00 +0530 Sat, 30 Nov 2024 14:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762427 CESTAT Chennai allowed the appeal challenging demand for default in timely duty payment under Rule 8(3A) of Central Excise Rules, 2002. The tribunal held that Rule 8(3A) prohibiting CENVAT credit utilization for duty payment is ultra vires the main Act, following Gujarat HC's decision in Indsur Global Ltd. case. SC's recent disposal of the department's appeal through Lok Adalat settlement revived the HC precedent declaring the rule unconstitutional. Consequently, the demand for violation of Rule 8(3A) was unsustainable, and extended limitation period and penalties were also set aside. Case-Laws Central Excise Wed, 27 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762427