2011 (12) TMI 682 - Board - Central Excise

Summary

Issues involved: Imposition of penalty for failure to make disclosures under Insider Trading Regulations.

Summary:
1. The appeal challenged a penalty of Rs. 10 lacs imposed for not making required disclosures under Insider Trading Regulations based on trading activities in shares of a company.
2. The appellant, a promoter director, failed to disclose transactions as per regulations, leading to the penalty.
3. The appellant argued not being a director or officer of the company, hence not obligated to comply with the regulations.
4. The case was remanded for fresh consideration as it was unclear if the appellant met the criteria of a director or officer under the regulations.
5. The adjudicating officer failed to establish the appellant's status as a director or officer, and the appellant did not adequately respond to the charges.
6. The case was sent back to the Board for reevaluation, with the appellant given three weeks to provide any explanations, and the previous penalty order was set aside.