M/S Mangalam Drugs & Organics Ltd vs Commissioners Of Central Excise
- CitationAppeal No. : E/13862/2014
Ratio decidendi
The rule this decision rests on
The question is whether the assessee was required to pay duty in cash or through the PLA during 5.12.2010 to 6.7.2011 under Rule 8(3A) of the Central Excise Rules, 2002. Following the Gujarat High Court's decision in Indsur Global Ltd, the Tribunal holds that Rule 8(3A), insofar as it required payment of duty without utilisation of Cenvat credit, is invalid, and therefore the impugned order demanding such payment cannot be sustained.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[ Arising out of OIO-DMN-EXCUS-000-COM-001-14-15 dtd 13.10.2014 Passed by Commissioners of Central Excise, Customs and Service Tax-DAMAN ]
M/s Mangalam Drugs & Organics Ltd - Appellant (s)
Vs.
Commissioners of Central Excise, Customs and Service Tax-DAMAN - Respondent (s)
Represented by:
Appellant (s) : Shri Rahul Gajera, Advocate Respondent (s) : Shri Alok Srivastava, Authorised Representative
For approval and signature :
Mr. P.K.Das, Hon'ble Member (Judicial) Mr. H.K. Thakur, 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. H.K. Thakur, Honble Member (Technical)
Date of Hearing / Decision : 20/4/2015
ORDER No. A/10540 / 2015 dtd 20/4/2015
Per : Mr. P.K.Das;
The applicant filed this application for Early Hearing of the appeal. After hearing both the sides, we find the appeal may be decided at this stage.
2. After hearing both the sides and on perusal of records, we find that the issue involved in this case is as to whether the assessee is to discharge duty liability during the period 5.12.2010 to 6.7.2011 through PLA/cash in terms of Rule 8 (3A) Central Excise Rule 2002. The Honble Gujarat High Court in the case of Indsur Global Ltd vs. UOI 2014.310.ELT.833 (Guj.) held that Rule 8(3A) of the said Rule to the portion without utilizing cenvat credit shall be rendered invalid. In view of that the impugned order cannot be sustained and set aside. The appeal filed by the applicant is allowed. The Early hearing application is disposed of.
(Dictated and pronounced in the Court)
(H.K. Thakur) (P.K. Das) Member (Technical) Member (Judicial)
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