2017 (8) TMI 1515

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....s ORDER Mr. Koushik Chanda, ASG Mr. Ganesh Chandra Panda ... for the UOI The vires of Rule 8(3A) of the Central Excise Rule, 2002 is under challenge in the present writ petition. Learned advocate for the petitioner submits that the petitioner had suffered an order in original dated July 10, 2014 which, inter alia, had imposed a penalty under Rule 25 by reason of alleged violation of Rule 8(3A) ....

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.... had granted leave to the petitioner to bring a fresh action questioning the constitutional validity of the Rule 8(3A) before the appropriate legal forum. He submits referring to five decisions of four different High Courts that, Rule 8(3A) of the Rules, 2002 has been struck down. He submits that, the special leave petition filed against one of such orders is pending adjudication before the Hon&#3....

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....ugh a collateral proceeding challenging the vires of a provision of a Rule. Even if the Rule is held to be ultra vires the order in original continues to remain valid so far as it govern the parties thereto. He further submits that, the Court be pleased not to entertain the vires of the Rules of 2002. I have considered the rival contentions of the parties and the materials made available on recor....

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....rts. On the parity of the reasoning of the decisions noted above, Rule 8(3A) of the Central Excise Rules to the extent as indicated in Indsur Global Ltd.(supra) is declared to be invalid. The next question arises as to whether the petitioner can benefit out of the declaration of invalidity of such Rule 8(3A) in the facts and circumstances of the present case. Indsur Global Ltd.(supra), on which ....