2007 (7) TMI 564 - AT - Central Excise

Summary

Issues: Rectification of mistake in cause title; Imposition of penalty on Director

The judgment addresses two main issues. Firstly, the Appellate Tribunal is requested to rectify a mistake in the cause title by adding the name of the Director of the first appellant, as it was missing. Secondly, the question arises regarding the imposition of a penalty on the Director in a case of alleged clandestine removal of goods. The Tribunal considers whether the penalty set aside on the main unit should also apply to the Director, given the circumstances.

Regarding the rectification of the cause title, the Tribunal notes that the second appellant, who is the Director of the first appellant, was not named in the original title. The Tribunal acknowledges this as an apparent mistake on record and orders the inclusion of the Director's name, Shri Ram Prakash Rungta, in the cause title. This rectification is deemed necessary to accurately reflect the parties involved in the appeal.

On the issue of imposing a penalty on the Director for alleged clandestine removal of goods, the Tribunal examines the arguments presented. The Tribunal observes that penalties on the main unit were set aside due to duty payment before the show cause notice. The Tribunal considers whether the Director should still be penalized, as argued by the ld. DR. However, the Tribunal opines that if penalties are not applicable to the main unit, they should not be imposed on the Director either. The Tribunal reasons that the Director's knowledge cannot be directly attributed to such activities, especially when other employees are involved in clearances. Additionally, the Tribunal finds no active involvement of the Director in the alleged clandestine removal, leading to the decision to set aside the objection and not penalize the Director.

In conclusion, the Tribunal partially allows the application for rectification of the cause title by adding the Director's name. The Tribunal also rejects the imposition of a penalty on the Director in the case of alleged clandestine removal of goods, emphasizing that the Director's knowledge cannot be directly linked to such activities and highlighting the lack of active involvement by the Director in the said removals.