2014 (7) TMI 22 - AT - Central Excise

Waiver of pre-deposit - personal penalties imposed under Rule 15 of Cenvat Credit Rules, 2004 - Held that - Adjudicating authority has imposed penalties on both the applicants/appellants under Rule 15 of Cenvat Credit Rules, 2004. On reading of Rule 15 of Cenvat Credit Rules, 2004, we are of the prima facie view that this rule cannot be invoked for imposing personal penalty on an individual for infraction done by an assessee. On this ground itself, the applicants have made out a strong case for waiver of pre-deposit of the amounts involved. The applications for waiver of pre-deposit of amounts involved are allowed and recovery thereof stayed till the disposal of appeals - Stay granted.

Summary

The Appellate Tribunal CESTAT Ahmedabad allowed the waiver of pre-deposit of penalties imposed under Rule 15 of Cenvat Credit Rules, 2004 for two appellants. The tribunal found that Rule 15 cannot be invoked for imposing personal penalty on an individual for an infraction done by an assessee. Recovery of amounts stayed till disposal of appeals. Appeals to be listed before Single Member Bench for disposal.