2018 (3) TMI 980

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....llant Shri Raghavendra B. Hanjer, Advocate, For the Respondent Per: S.S GARG         For the reasons stated in the COD application, I allow the COD application and the cross-objections are taken on record. Now, I proceed to decide the Revenue's appeal on merit. 2. The present appeal has been filed by the Revenue against the impugned order dated 05.02.2016 pa....

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....and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in the rules shall follow. It was alleged that the respondent had defaulted in payment of duty beyond thirty days from the due date, and discharged the duty liability on a monthly basis utilizing cenvat credit, on clearing goods for the months....

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....osition of penalty in the facts and circumstances of the case is not sustainable in law. He further submitted that the erstwhile provisions of Rule 8(3A) of the Central Excise Rules has been declared as unconstitutional and hence the demand itself is not sustainable by invoking erstwhile Rule 8(3A) of the Central Excise Rules, 2002. In support of his submission, he relied upon the decision in the ....

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....es - 2016 (340) E.L.T. 291 (Del.) h) Cheran Cements Ltd. Vs. CCE - 2015-TIOL-2119-CESTAT-MAD. 5.1. He further submitted that non-payment of duty on consignment basis and utilization of credit towards payment of duty during the period of default was due to the financial problems faced by the respondent and therefore the violations of Rule 8(3A) of the Central Excise Rules can only be treated as p....