9911796707
TMI Blog2011 (12) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by certain registered dealers M/s. Sulabh Impex INC., M/s. Ganpati Trade Link, M/s. S.R. International. On this basis, the Jurisdictional Joint Commissioner vide order-in-original dated 2-7-2009 confirmed the Cenvat credit demand of Rs. 5,35,836/- against the appellant along with interest and imposed penalty of Rs. 1,33,960/- (25% of the duty demand) under Section 11AC. Beside this, Joint Commissioner also imposed penalty of Rs. 1,33,960/- on Shri M.K. Jain, Partner of the appellant-firm under Rule 26 and 27. The penalty of 25% of the duty amount was imposed on the ground that the appellant had paid the entire amount of Cenvat credit demand along with interest and 25% of the Cenvat credit demand towards penalty even prior to the issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Sai Metal Industries Ltd. v. CCE, Hyderabad reported in 2010 (256) E.L.T. 631 (Tri. - Bang.) has also held that partners and their partnership cannot be penalised at the same time, that even otherwise there was no evidence to justify the imposition of penalty on Shri M.K. Jain under the provisions of Rules 26 and 27 of Central Excise Rules and that in view of this, the impugned order is not correct. 4. Mrs. R. Jagdev, learned SDR defending the impugned order pleaded that while the penalty on the appellant firm on this case has been imposed under Rule 15(2) of Cenvat Credit Rules, 2004 readwith Section 11AC of Central Excise Act, for taking wrong Cenvat credit in a fraudulent manner, penalty on the partner of the appellant firm Shri M.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y material and for this penalty on them has been imposed under Rule 15(2) of Cenvat Credit Rules, readwith Section 11AC. While for the same contravention, that is availing Cenvat credit in a fraudulent manner on bogus invoices, separate penalty on partner of the partnership firm would not be called for, if there is evidence that the activity of the partner attracted penal provisions of Rule 26, in my view, the penalty under Rule 26 of the Central Excise Rules can be imposed. 7. Under Rule 26 of the Central Excise Rules, penalty is imposable on any person who acquires possession of or is in any manner concerned with transporting, selling, purchasing, depositing or concealing or in any manner dealing with excisable goods which he knows or ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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