Waiver of Penalty Granted under CENVAT Credit Rules

The Tribunal granted waiver of the penalty under Rule 15 of CENVAT Credit Rules, 2004, and directed the appellant to deposit a specified amount for the penalty under Rule 26 of Central Excise Rules, 2002. Recovery of the balance amounts was stayed pending the appeal's final disposal.

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Issues:
1. Waiver of pre-deposit of penalties under Rule 15 of CENVAT Credit Rules, 2004.
2. Waiver of pre-deposit of penalties under Rule 26 of Central Excise Rules, 2002.

Analysis:
1. The appellant filed a Stay Petition seeking waiver of pre-deposit of penalties imposed under Rule 15 of CENVAT Credit Rules, 2004. The Tribunal found that the imposition of penalty under Rule 15 may not arise. The appellant made a prima facie case for waiver of the penalty under Rule 15 of CENVAT Credit Rules, 2004. Therefore, the Tribunal allowed the waiver of the penalty under Rule 15.

2. Regarding the penalty under Rule 26 of Central Excise Rules, 2002, the appellant claimed to have only issued invoices enabling another party to avail ineligible CENVAT Credit. The Tribunal noted the appellant's statement and the transporter's statement supporting this claim. However, the Tribunal found that the appellant did not present a strong case for complete waiver of the penalty under Rule 26. As a result, the Tribunal directed the appellant to deposit Rs.2 lakhs within eight weeks and report compliance. The application for waiver of the balance amounts was allowed, and recovery was stayed pending the appeal's disposal. The Tribunal emphasized that further legal points raised could be considered during the final disposal of the appeal.

In conclusion, the Tribunal granted waiver of the penalty under Rule 15 of CENVAT Credit Rules, 2004, while directing the appellant to deposit a specified amount for the penalty under Rule 26 of Central Excise Rules, 2002. The recovery of the balance amounts was stayed pending the appeal's final disposal.

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