NAVEEN JAIN Vs. COMMISSIONER OF CENTRAL EXCISE, KANPUR

JUDGEMENT

(1.) A case of wrong availment of Cenvat credit was made out by Revenue against M/s. Kundan Castings (P) Ltd., Malwan, Fatehpur. A Show Cause Notice issued in that regard was confirmed resulting in confirmation of excise duty of Rs. 97,990/ - against M/s. Kundan Castings (P) Ltd. along with penalties. Further a penalty of Rs. 97,990/ - was imposed under Rule 13 of Cenvat Credit Rules on Shri Naveen Jain, Director of the said company who is present appellant before the Tribunal. The matter relating to duty confirmed and penalty imposed on the assessee is not before the Tribunal in this proceeding. The Counsel for the appellant pleads that Rule 13 of [Cenvat Credit] Rules, 2002 under which penalty has been imposed cannot be invoked for imposing a penalty on Director of a company because under the said rule, penalty can be imposed only on the person who availed wrong Cenvat credit. The Director of the company did not avail any Cenvat credit and it is only the assessee company which availed Cenvat credit and penalty has been imposed on the company.

(2.) LD . AR for Revenue submits that when a company commits an offence a person in charge of the company is also responsible for such offence and to absolve himself such person has to prove that the offence was committed without his knowledge and then only there is a case for waiving penalty on the Director of the company. In this case, the appellant has not proved that the offence was committed without his knowledge.