2019 (11) TMI 235

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g under Chapter 73 of Central Excise Tariff Act, 1985. During the relevant period i.e. July 2002 to June 2011, they have wrongly utilised CENVAT Credit in discharging their duty liability on clearance of excisable goods, in contravention of Rule 8(3A) of Central Excise Rules, 2002. Demand notice was issued to them on 01.08.2011 for recovery of interest under Section 11AB of Central Excise Act, 1944 and proposing confiscation of the goods under Rule 25 of Central Excise Rules, 2002. On adjudication, the demand was confirmed with penalty. Hence, the present appeal. 3. The learned Advocate, at the outset, submits that in their own case, for discharging duty liability by debiting CENVAT Credit for the month of February 2008, the issue had be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The issue of utilisation of CENVAT Credit post default in monthly payment of duty under Rule 8(3A) of Central Excise Rules, 2002 is no more res integra. The relevant portion, which debars utilisation of such credit, has been struck down by the Hon'ble Gujarat High Court in Indsur Global case (supra). Their lordships have observed as follows:- "34. By no stretch of imagination, the restriction imposed under sub-rule (3A) of Rule 8 to the extend it requires a defaulter irrespective of its extent, nature and reason for the default to pay the excise duty without availing Cenvat credit to his account can be stated to be a reasonable restriction. It leads to a situation so harsh and a position so unenviable that it would be virtually imp....