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2014 (6) TMI 419 - HC - Central ExcisePenalties on respondents-dealers - facilitated others in taking fraudulent CENVAT - paper transactions without actual movement of goods - The party was a manufacturer on paper - Held that:- This Court in Ashish Gupta and Vee Kay Enterprises’s cases [2011 (3) TMI 133 - PUNJAB AND HARYANA HIGH COURT] had held that Rule 26(2) of the Rules by virtue of which an assessee was held liable for penalty where invoices were issued without any movement of goods, was inserted by notification dated 1.3.2007 which was not applicable to alleged acts committed prior to the said date. Further, in view of the findings recorded by Commissioner (Appeals) to the effect that Rule 25(1) (b) of the Rules was not attracted to the facts of the present case, the aforesaid judgment does not advance the case of the revenue. However, the Commissioner (Appeals) and the Tribunal on facts deleted the penalty. Revenue has filed appeals where no penalty was imposed on persons who issued invoices without delivery of the goods prior to amendment of sub rule (2) of Rule 26 of the Central Excise Rules, 2002. After considering the above question of law, it has been held that where a person merely arranges modvatable document to the manufacturer without actual delivery of goods, penalty could not be imposed under rule 209A. Rule 26(2) of Central Excise Rules, 2002 prior to amendment on 1.3.2007 is akin to Rule 209A. - Decided against Revenue.
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