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2022 (2) TMI 730 - AT - Central ExciseLevy of penalty under Rule 15(1) of Cenvat Credit Rules, 2004 read with Rule 26 of Central Excise Rules, 2002 - availment of wrong credit - forged bills of entry - HELD THAT:- Since the main company has settled their case under SVLDRs, 2019 no discussion is required to be made for company’s case. However, the bill of entry is not an invalid document, the only lapse on the part of the company is that they have taken the credit on the Bill of Entry whereas the custom duty was paid but the same was not in the name of the M/s Nitco Ltd , Village- Silli, Silvassa, Gujarat. In this fact it cannot be said that the present appellant who is an employee of the company has intentionally done any fraud. The issue involved is of interpretation of Cenvat Credit Rules, 2004 for which the company M/s Nitco Ltd, Silli has been demanded the wrongly availed credit and penalty was also imposed. In this nature of case personal penalty cannot be imposed on the employee as the credit was not taken on a forged or invalid document but the only lapse was that the bill of entry was not in the name of the company but in the name of the different location. However, both the company belongs to one entity only even the availment of credit does not amount to double benefit. In these facts of the case, the personal penalty cannot be imposed on the employee. Penalty set aside - appeal allowed - decided in favor of appellant.
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