PRECISION FASTENERS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) RULE . To be heard with Special Civil Application No. 8835/2008.

(2.) THIS petition preferred under Article 226 of the Constitution of India arises from the demand for payment of outstanding excise duty made by the Respondents -authorities. The Petitioners have challenged the constitutional validity of Sub -rule (3A) of Rule 8 of the Central Excise Rules, 2002 as being arbitrary, unreasonable and beyond the authority to make rules conferred by Section 37 of the Central Excise Act.

(3.) IT is not in dispute that the Petitioners were in default in making payment of excise duty for the months of September, October and November, 2007. It is also not in dispute that till this date the outstanding dues for the said months to the extent of Rs. 1,06,26,770 -00 is still not paid. The Petitioners are also in default in making payment of excise duty since June, 2008. The claim made by the Petitioners that the outstanding excise duty be permitted to be paid through CENVAT credit accumulated after the due date of payment is contrary to the CENVAT Rules and cannot be accepted.