2005 (12) TMI 330 - AT - Central Excise

Summary

Issues:
1. Stay application seeking waiver of penalty imposed on the Director of a company.
2. Director's personal liability for clandestine clearance of goods without payment of duty.

Analysis:
The case involved a stay application by the Director of a company seeking waiver of a penalty imposed on him. The Director argued that since the company had already paid the duty and the penalty was waived for the company, his penalty should also be waived. However, the Revenue contended that the Director was personally liable for clandestinely clearing goods without duty payment, as he was not authorized by the company to do so.

The Tribunal agreed with the Revenue, stating that a Director who clandestinely clears goods outside his official role is personally liable for the penalty. Therefore, the Tribunal directed the Director to pre-deposit a sum of Rs. 25,000 within 8 weeks. Failure to comply would result in the dismissal of the appeal. The Tribunal emphasized the Director's personal liability for the act of clandestine clearance and the necessity for pre-deposit to proceed with the appeal.

In conclusion, the Tribunal held that the Director's personal liability for clandestine clearance of goods without duty payment warranted pre-deposit of Rs. 25,000 for the appeal to proceed. The decision highlighted the importance of upholding individual responsibility in cases of unauthorized actions, even within a corporate setting.