To run a SSIS package outside of SQL Server Data Tools you must install Move File to Archive of Integration Services or higher

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Just to give future visitors something to look on, in my case issue was I had two different version of SSIS installed on same machine. One was for 2005 and another for 2014. And oddly enough even I was explicitly pointing to newer version (as shown in later part of post) in my command, it was always using old version.

Once I had clean system with just SQL Server 2014 (& SSIS) same package ran without any issue. So it appears a limitation of some sort which doesn’t allow to run two different versions of SSIS on same machine.

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