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2019 (4) TMI 2117 - AT - Central ExciseLevy of penalty u/r 26 of Central Excise Rules, 2002 - Availment of fraudulent CENVAT Credit - issuance of bogus LRs for transport of copper - HELD THAT:- From the plain reading of the Rule 26, it is clear that merely for making bogus LRs, the action of the appellant does not fall as an offence under Rule 26. The rule 26 was subsequently amended from 01.03.2007 effective from 01.04.2007. Since the period involved is prior to the said amendment, the penalty under Rule 26 cannot be imposed only for issuance of bogus LRs. This issue is covered by the judgment of Hon’ble Punjab High Court in case of COMMISSIONER CENTRAL EXCISE, COMMISSIONERATE VERSUS M/S MINI STEEL TRADERS [2014 (6) TMI 419 - PUNJAB & HARYANA HIGH COURT] where it was 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. Penalty set aside - appeal allowed.
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