I would like to encrypt and decrypt a password using 128 bit AES encryption with 16 byte key. I am getting javax.crypto.BadPaddingException error while decrypt
You state that you want to encrypt/decrypt a password. I'm not sure exactly of what your specific use case is but, generally, passwords are not stored in a form where they can be decrypted. General practice is to salt the password and use suitably powerful one-way hash (such as PBKDF2).
Take a look at the following link for more information.
http://crackstation.net/hashing-security.htm