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TMI Blog2024 (10) TMI 1335X X X X Extracts X X X X X X X X Extracts X X X X ..... me for its own purposes for payment of the duty and therefore, the penal provisions has provided under Rules, 15(1) of the Cenvat Credit Rules, 2004 are not invokable in this case. Reliance placed upon this Tribunal decision in case of SHRI PRANATHARTHIHARAN SRIDHARAN VERSUS COMMISSIONER OF CENTRAL EXCISE ST, VADODARA-I [ 2023 (3) TMI 1123 - CESTAT AHMEDABAD] where it was held that ' penalty under Rule 15(1) on the present appellant, who is merely an employee of the Company, is not sustainable.' The impugned order in Original is without any merit so far as imposition of penalty on the appellant is concerned - appeal allowed. - HON'BLE MEMBER ( TECHNICAL ) , MR. C. L. MAHAR Shri. Amber Kumrawat, Advocate for the Appellant Shri. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Plan in favour of some other company namely M/s SVG Fashions Pvt. Ltd. And therefore, this Tribunal vide its Final Order No. A/10367/2022 and Final Order No. A/11056/2022 dated 11.04.2022 and 29.08.2022, respectively have passed and order abating the appeal proceedings in the matter in view of the NCLT s order. 4. The learned advocate has also submitted that penalty under Rule, 15 (1) cannot be imposed on a person who has not availed Cenvat Credit himself. it has been submitted that the appellant was only on employee of the company and provisions of the Rule 15 (1) of the Cenvat Credit Rules, 2004 provides that a person shall be liable to penalty who takes or utilises Cenvat Credit in respect of input or capital goods or input services ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken Cenvat Credit himself or utilize the same for its own purposes for payment of the duty and therefore, I am of the view that penal provisions has provided under Rules, 15(1) of the Cenvat Credit Rules, 2004 are not invokable in this case. While holding the above view I am also relying upon this Tribunal decision in case of SHRI PRANATHARIHIHARAN SRIDHARAN VERSUS COMMISSIONER OF CENTRAL EXCISE ST, VADODARA-I reported under 2023 (3) TMI 1123 CESTATAhmedabad dated 24 March, 2023, the relevant extract of the above decision is reproduced here below: 4. We carefully considered the submissions made by both the sides and perused the record. The appellant is an employee Director in the Company M/s. Diamond Power Transformers Limited who was all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. This issue has been considered by this Tribunal in the case of Mukesh Dani vs. CCE, Surat (supra) wherein the following order was passed:- 5. Heard both sides and perused the records. The short point needs to be considered is: whether personal penalty on the appellants who were at the relevant time employees of company, is sustainable under Rule 15 of CCR, 2004. Before proceeding to consider the arguments advanced by both sides, it is necessary to refer to Rule 15 of CCR, 2004, which reads as under:- 15. Confiscation and penalty. (1) If any person, takes CENVAT credit in respect of input or capital goods, wrongly or without taking reasonable steps to ensure that appropriate duty on the said input or capital goods has been paid as indicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of facts, or contravention of any of the provisions of the Finance Act or of the rules made thereunder with intention to evade payment of service tax, then, the provider of output service shall also be liable to pay penalty in terms of the provisions of section 78 of the Finance Act. (5) Any order under sub-rule (1), sub-rule (2), sub-rule (3) or sub-rule (4) shall be issued by the Central Excise Officer following the principles of natural justice. 6. A plain reading of the said Rule 15 of CCR, 2004, reveals that it consists of five sub-rules for different situations and 2004, these subrules directs imposition of personal penalty on the employees of an ering assessee under the said rule. Besides, there is no mention of the relevant sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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