M/S Indsur Global Ltd vs Central Excise, Customs And
- CitationAppeal No. : E/12255-12260,12321,12322/2014
Ratio decidendi
The rule this decision rests on
The issue of utilising Cenvat credit during a defaulted period under sub-rule (3A) of Rule 8 of the Central Excise Rules, 2002 is not res integra, and the matter is governed by the Gujarat High Court's decision in Indsur Global Ltd v. Union of India, which held the condition in sub-rule (3A) of Rule 8 requiring payment of duty without utilising Cenvat credit until the outstanding amount with interest is paid to be unconstitutional and the portion of that sub-rule requiring such non-utilisation to be invalid; accordingly, the impugned orders founded on that condition cannot be sustained and are set aside.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[ Arising out of OIO-VAD-EXCUS-002-COM-092-095-13-14 dtd 12/03/2014 Passed by Central Excise, Customs and Service Tax-VADODARA-II ]
M/s Indsur Global Ltd Shri S M Lodha Appellant(s)
Vs
Central Excise, Customs and Service Tax-VADODARA-II Respondent (s)
Represented by :
For Assessee : Shri H D Dave, Advocate For Revenue : Shri Alok Srivastava, Authorised Representative
For approval and signature :
Mr. P.K. Das, Hon'ble Member (Judicial) Mr. P.M. Saleem, Honble Member (Technical)
1 Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
No 2 Whether it should be released under Rule 27 of CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
No 3 Whether their Lordships wish to see the fair copy of the Order?
Seen 4 Whether Order is to be circulated to the Departmental authorities?
Yes
CORAM :
Mr. P.K. Das, Hon'ble Member (Judicial) Mr. P.M. Saleem, Honble Member (Technical)
Date of Hearing / Decision : 17/7/2015
ORDER No. 11128-11135/2015 dtd 17/7/2015
Per : Mr.P.K. Das,
After hearing both the sides and perusal of the records, we find that the issue involved in these appeals are that the appellants used cenvat credit during the defaulted period under Sub Rule 3(A) of Rule 8 of the Central Excise Rules 2002. The issue is no more res integra in view of the decision of the Honble Gujarat High Court in the case of Indsur Global Ltd vs UOI [2014(310)ELT.833(Guj.)]. The relevant portion of the said decision is reproduced below:
36.In the result, the condition contained in sub-rule (3A) of Rule 8 for? payment of duty without utilizing the Cenvat credit till an assessee pays the outstanding amount including interest is declared unconstitutional. Therefore, the portion without utilizing the Cenvat credit of sub-rule (3A) of Rule 8 of the Central Excise Rules, 2002, shall be rendered invalid.
2. In view of the above discussion the impugned orders are set aside. All the appeals filed by the appellants are allowed.
(Dictated and pronounced in the Court)
(P.M. Saleem) (P.K. Das) Member (Technical) Member (Judicial)
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