2026 (8) TMI 1210

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.... Rs. 5 lakhs imposed on him under Rule 26 (2) of the Central Excise Rules, 2002. 2. The facts of the case are that the Revenue entertained the view that the appellant had availed CENVAT Credit without using the concerned pig iron in the factory. It is seen from the record that M/s. Maheshwary Ispat Ltd. had purchased pig iron from the supplier-manufacturer, namely, M/s. Neo Links Ltd. under the cover of Central Excise Invoices, on which CENVAT Credit was availed. Based on such duty-paying documents, the appellant has availed the impugned credit. 2.1. The Order-Original-No. 66/ADC/BOL/13 dated 8-10-2013 disallowed the said credit against the purchaser and imposed a penalty on both the manufacturer and its director. A penalty of Rs.5 la....

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....e the goods in question are Central Excise duty paid and Shri Satyanarayan Dey has not facilitated his buyers to avail any Cenvat Credit illegally, there is no occasion for him to believe that the said Pig iron were liable for confiscation. * As the purchaser, who had availed alleged purported ineligible credit is of the stature of a Public Limited Company and breached the provision of cenvat credit rules by availing credit without using the input in the manufacture, it should be considered wholly their culpability and obligation. Merely, because Shri Satyanaryan Dey sold the duty paid goods to the buyers, who uncontrovertibly did not avail cenvat credit, it cannot be said that Sri Dey has made himself liable to penalty under Rule ....

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....f the case. 7. We find that the penalty of Rs.5 lakhs under Rule 26 (2) of the Central Excise Rule, 2002 has been imposed on the appellant in this case. For ready reference, the said rule is reproduced below: ........... (2) Any person, who issues - (i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) any other document or abets in making such document, on the basis of which 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 s....