Madras HC Strikes Down Central Excise R.8(4) Ultra Vires, Quashes Demand Orders With Fresh Hearing

The Madras High Court has struck down Rule 8(4) of the Central Excise Rules, declaring it 'ultra vires' or beyond the legal authority of the rule-making body. The court also quashed the demand orders that were issued based on this rule. The specific details of why the rule was found to be ultra vires were not provided in the summary, but it likely involved the rule imposing conditions or liabilities that were not supported by the parent Central Excise Act. Consequent to striking down the rule, the High Court remanded the related cases back to the adjudicating authority for a fresh hearing. The court directed that the matters be decided on their merits, without applying the now-invalidated rule. This judgment provides a significant relief to the affected assessees and underscores the judiciary's role in ensuring that delegated legislation (rules) does not overstep the powers granted by the primary legislation (the Act).