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2014 (1) TMI 779 - CESTAT BANGALORECenvatable invoices issued without clearance of duty-paid goods to their customers – Waiver of Pre-deposit of penalty under Rule 25 of the Central Excise Rules 2002 read with Section 11AC of the Central Excise Act – Personal penalty on director under Rule 26 of the Central Excise Rules 2002 – Held that:- The offence alleged by the department pertains to a period after 1.3.2007, the date with effect from which Sub-rule (2) of Rule 26 came into force providing a penalty for a dealer issuing ‘cenvatable’ invoices without goods - The question whether, in lieu of Rule 26(2), Rule 25(1) could be invoked against the dealer has been debated before me at length - There was no intention to evade payment of duty which can be attributed to the company - Rule 25(1)(d) could be applied to a person who was concerned in selling or dealing with goods which were liable to confiscation - This view was taken in proceedings where the department proposed to penalize not only the dealer who issued invoices without goods but also his customer who took CENVAT credit on the basis of such invoices without receiving goods - There is no evidence of their customers having been penalized – Penalty imposed on the assessee waived and stayed till the disposal – Stay granted.
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