Madras HC Strikes Down Central Excise Rule 8(4), Quashes Demand Orders

Salem Textiles Limited Vs Superintendent of Central Excise (Madras High Court)

The Madras High Court has delivered a significant ruling, declaring Rule 8(4) of the Central Excise Rules, 2001 and 2002, as inconsistent with the Cenvat Credit Rules and ultra vires the Central Excise Act, 1944. This decision, issued in a common order across four writ petitions, including those filed by Salem Textiles Limited, has led to the quashing of related demand and recovery orders, with directions for fresh hearings on the remaining aspects of the demands.

The core of the challenge centere

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