2014 (6) TMI 752 - AT - Central Excise

Waiver of pre deposit - Penalty on CHA for abetment - in-eligible availment of Cenvat credit - Penalty under Rule 26 of Central Excise Rules, 2002 - Held that - Appellant, as a CHA, has filed Bills of Entry along with declaration as has been given by the importer and has discharged applicable Customs duty on the said consignment and cleared the consignment out of the Customs area and handed it over to the importer. After the goods were cleared from the Customs area, even if the appellant herein has directed the transporter to deliver the consignment to some other place other than the place, would not amount to his abetment of the issue of in-eligible availment of Cenvat credit by somebody else. - prima facie provisions of Rule 26 of Central Excise Rules, 2002, cannot be invoked against the appellant for imposition of penalty. - Stay granted.

Summary

The Appellate Tribunal CESTAT Ahmedabad allowed the Stay Petition for waiver of pre-deposit of penalty of Rs. 2 lakhs imposed on the appellant, a CHA, under Rule 26 of Central Excise Rules, 2002. The Tribunal found that the appellant's actions did not amount to abetment of ineligible Cenvat credit, and thus, the penalty was not justified. Recovery of the penalty amount was stayed pending appeal.