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2020 (2) TMI 1199 - CESTAT AHMEDABADImposition of penalty u/r 15 of Cenvat Credit Rules, 2004 and Rule 26 of Central Excise Rules, 2002 - CENVAT credit - bogus invoices - case of the department is that the appellant has issued bogus invoice and no goods were sold under those invoices to M/s Kothi Steel Ltd. - HELD THAT:- The penalty under Rule 15 can be imposed only on that person who takes or utilizes the Cenvat credit. If in any case, any manufacturer who is liable to pay duty on final product wrongly avails and utilizes the credit in respect of inputs, he is liable for penalty under Rule 15 - In the present case, the appellant has neither taken the credit, nor utilized the credit, whereas he has only issued a Cenvatable invoice to some other company M/s Kothi Steel Ltd. Therefore, the Rule 15 is not applicable in the present case. Hence, penalty imposed under Rule 15 of Cenvat Credit Rule, 2004 by the lower authorities is illegal and incorrect. Penalty imposed under Rule 26 of Central Excise Rules, 2002 - HELD THAT:- The same issue has been considered by the Hon’ble High Court of Punjab & Haryana in the case of M/S VEE KAY ENTERPRISES, FARIDABAD VERSUS COMMISSIONER OF CENTRAL EXCISE [2011 (3) TMI 133 - PUNJAB AND HARYANA HIGH COURT] which was followed by this Tribunal in the case of COMMISSIONER OF CENTRAL EXCISE AHMEDABAD VERSUS SHRI NAVNEET AGARWAL [2011 (8) TMI 250 - CESTAT, AHMEDABAD] wherein it was held that penalty under Rule 26 (2) is imposable on the person who has issued the invoices without supply of goods. The penalty under Rule 26 was rightly imposed on the appellant. Hence, the same is upheld - Penalty u/r 15 set aside - appeal allowed in part.
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