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Judgment
R.M. Doshit, J.—Rule. To be heard with Special Civil Application No. 8835/2008.
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.
The Petitioners have prayed that pending the petition the operation and implementation of the directions contained in the letters dated 9th September, 2008 and 12th September, 2008 at Annexures-''H'' and T to the petition be stayed and the Respondents be restrained from prohibiting the Petitioners from clearing their goods on payment of duty either from PLA or from CENVAT account.
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.
In view of the admitted defaults committed by the Petitioners, coercive action taken by the Respondents-authorities in exercise of the powers conferred by law, interim relief pending the petition is refused.