https://www.taxtmi.com/caselaws?id=786519 The requirement in Rule 8(3A) of the Central Excise Rules, 2002 to pay duty without utilising Cenvat credit is unconstitutional because it imposes an arbitrary and disproportionate restriction on a defaulting assessee. Consequently, duty demands founded on that restriction are unsustainable, although interest remains payable for delayed duty payment under Rule 8(3). Where goods were cleared under invoices, duty was ultimately paid, and no intent to evade duty existed, penalty under Rule 25 read with Section 11AC is inappropriate. Such procedural contraventions attract penalty under Rule 27 instead. en-us Thu, 12 Feb 2026 00:00:00 +0530 Sat, 14 Feb 2026 08:29:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786519 The requirement in Rule 8(3A) of the Central Excise Rules, 2002 to pay duty without utilising Cenvat credit is unconstitutional because it imposes an arbitrary and disproportionate restriction on a defaulting assessee. Consequently, duty demands founded on that restriction are unsustainable, although interest remains payable for delayed duty payment under Rule 8(3). Where goods were cleared under invoices, duty was ultimately paid, and no intent to evade duty existed, penalty under Rule 25 read with Section 11AC is inappropriate. Such procedural contraventions attract penalty under Rule 27 instead. Case-Laws Central Excise Thu, 12 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786519