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TMI Blog2024 (11) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... of the invoice or the document is likely to take or has taken ineligible benefit under the Act or Rules. In this case, the allegation in the SCN as well as affirmation in the impugned order is that the assessee had taken CENVAT credit on the strength of fraudulent invoices issued by M/s Ridhi Sidhi without supplying of the goods - The role of Shri Prem Jain is as the Director of the assessee and the role of Shri Gyan Jain is as the General Manager of the assessee. Neither the assessee nor Shri Prem Jain nor Shri Gryan Jain have either issued invoices or abetted issuing of the invoices according to the show cause notice or the impugned order. Therefore, Shri Prem Jain and Shri Gyan Jain are not covered by Rule 26 (2). Rule 15A of CCR, provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved on 11.09.2024. Thereafter, these appeals were listed on 12.03.2024, 03.06.2024 and 09.09.2024, but nobody appeared. Today also, no one has appeared for the appellants. 2. We heard learned authorized representative appearing for the department and perused the records. 3. These two appeals assail the order-in-appeal dated 15.02.2023 [Impugned order] passed by the Commissioner (Appeals) Central Excise and CGST, Jodhpur upholding the Order-in-Original dated 27.04.2022 [OIO] passed by the Additional Commissioner and rejecting the appeals filed by Shri Prem Jain and Shri Gyan Jain along with the appeal filed by M/s Prem Jain Ispat Limited, Kota. 4. The facts which led to the issue of the impugned order are that the M/s Prem Jain Ispat Udyog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e only by Shri Prem Jain and Shri Gyan Jain assailing the penalties imposed on them. 8. The relevant portion of the OIO imposing penalties is as follows: (i) I impose penalty of Rs. 5,00,000/- (Rs. Five Lacs Only) upon SH. Prem Jain Director of M/s Prem Jain Ispat Udyog Pvt Ltd. under rule 15A of the Cenvat Credit Rules, 2004 and Rule 26(2) of the Central Excise Rules 2002. (ii) I impose penalty of Rs.5,00,000/- (Rs. Five Lacs Only) upon Sh. Gyan Chand Jain Manager cum Authorised Signatory of M/s Prem Jain Ispat Udyog Pvt Ltd. under rule 15A of the Cenvat Credit Rules, 2004 and Rule 26(2) of the Central Excise Rules, 2002. 9. In these appeals both Shri Prem Jain and Shri Gyan Jain seek setting aside of the penalties imposed on them on three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made thereunder like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater. Rule 15A of CENVAT Credit Rules, 2004 RULE - 15A. General penalty. Whoever contravenes the provisions of these rules for which no penalty has been provided in the rules, shall be liable to a penalty which may extend to five thousand rupees. 13. Evidently, Rule 26(2) of the Central Excise Rules provides for imposing penalty on any person who either issues an excise duty invoice without delivery of goods specified the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit. There is also no provision for imposing penalty upon the Director or the General Manager or other functionary of assessee under the CCR. Rule 15A of CCR, therefore, also does not apply to the Director or General Manager of the assessee. 15. Thus, neither Rule 26 (2) of Central Excise Rules, 2002 nor Rule 15A of CCR under which the penalty was imposed on Shri Prem Jain and Shri Gyan Jain apply to the facts of this case. The penalty imposed on them cannot be sustained as it is imposed without any authority of law. 16. It also needs to be pointed out that while penalties were imposed under two different Rules [Rule 26(2) of the Central Excise Rules and Rule 15A of CCR ] the quantum of penalty imposed under each of them has also not be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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