2006 (11) TMI 499 - AT - Central Excise

Summary

Issues involved: Appeal against penalties imposed on directors of a company for clandestine removal of goods and confiscation.

Summary:
The appeals were filed against penalties imposed on the directors of a company for the clandestine removal of goods and confiscation. The main noticee, the company, settled the dispute under the Kar Vivad Samadhan Scheme (KVSS), absolving them of all allegations. The penalties on the directors were upheld by the adjudicating authority, which was challenged in the appeal. The issue was whether the penalties imposed on the directors could be upheld after the main noticee settled under KVSS.

The authorized representative argued that the directors should also benefit from KVSS since the main noticee settled. They cited relevant legal precedents to support their argument. The Departmental Representative reiterated the findings upholding the penalties on the directors.

The Tribunal considered the submissions and the record. The issue was whether penalties imposed on the directors could be upheld when the main noticee settled under KVSS. The Commissioner (Appeals) had set aside penalties on the company but upheld those on the directors. The Tribunal found that the Commissioner misdirected himself regarding the penalties on the directors. Citing legal precedents, the Tribunal held that the penalties on the directors should not stand when the main noticee settled under KVSS. Therefore, the appeals were allowed, and the impugned order was set aside.