2025 (4) TMI 1111

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....rief facts of the case are that the appellant is engaged in the manufacturing of Laminated Textile Fabrics falling under Chapter 59 of the Central Excise Tariff Act, 1985 and are availing CENVAT credit facility in terms of CENVAT Credit Rules, 2004. 1.1 During preventive checks, it was found that the appellants had cleared finished goods valued at Rs. 8,06,73,120/- during the period from January, 2010 to March, 2012 under cover of Central Excise invoices, charging/collecting central excise duty from the buyers but they did not pay duty within the stipulated time period i.e. upto 5th February of the successive month except the month of March where due date was 31st March. 1.2 The appellant neither discharged their duty liability for Ja....

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...., 2002, continued to utilize Cenvat Credit for payment of duty against clearances made in subsequent months. They did not pay consignment-wise duty and acted in a manner of habitual offender, thus deliberately contravened the provisions of Rule 8(3) & 8(3A) of Central Excise Rules, 2002 rendering the entire goods cleared during the above period liable for confiscation under section 11 r/w Rule 25 of the CER, 2002. 2. The Learned counsel for the appellants opening his arguments stated that the issue is no more res-intgra as Rule 8(3A) of the Central Excise Rules, 2002 was held to be ultra vires and declared unconstitutional by Hon'ble Gujarat High Court in the case of Indusr Global Ltd 2014 (310) ELT 833 (Guj)/ 2014 (12) TMI 585 (Guj)....

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....Surat- 2004 (169) ELT 171 4. This court has considered the rival submissions. It finds that Hon'ble Jurisdictional High Court of Gujarat in its decision (cited Supra) in the matter of Indusr Global Ltd Vs. Union of India, has already declared that part of Rule 8(3A) which prescribes "payment of duty without utilizing the Cenvat Credit till an assessee pays the outstanding amount including interest" as unconstitutional. As far as liability to pay interest for the default period is considered, the Hon'ble Court held that this liability continues as per subrule (3) of Rule 8. Also, consignment wise payment of duty during the default period has not been declared unconstitutional. No Contrary decision of the Apex Court has been bought to our ....