2006 (2) TMI 392 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, New Delhi considered a stay application regarding the recovery of a penalty of Rs. one lakh. The applicant, a trader who passed on Modvat credit, was issued a show-cause notice for penalty under Rule 13(1) of Cenvat Credit Rules, 2002. The Tribunal found that the rule can only be invoked against the person who availed the credit, not a registered dealer. The penalty was waived, and recovery stayed till the appeal's disposal. The appeal was tagged along with another related appeal for final hearing.