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2021 (7) TMI 1307 - AT - Central ExciseLevy of penalty u/r 26 of Central Excise Rules, 2002 - presence of mens rea or not - penalty imposed upon the appellant for the reason that they were the employees of the Company and were responsible for handling the day to day activities/affairs - HELD THAT:- Commissioner has not established the element of “mens rea”, which is an essential ingredient for imposition of penalty under Rule 26 of the Central Excise Rules, 2002. Since the impugned order fails to establish the ingredient of “mens rea” on the part of the Appellants who were otherwise performing their duties as employee of the company, the penalties cannot be imposed on the appellants in these two appeals - once the issue of the main company against whom the demand for duty was made under Section 11A of Central Excise Act, 1944, has been settled under SVLDRS, case for imposition of penalty under Rule 26 on the employees will fail. This exactly is prescribed by the scheme also. The only requirement is that person on whom penalty is imposed makes application under the scheme. Appeal allowed.
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