2013 (11) TMI 1095 - AT - Central Excise

Illicit removal of the finished goods Separate Penalty on the partner of the main appellant and also on authorised signatory of the appellant Waiver of Pre-deposit Held that - The main appellant has deposited the entire amount of the duty, interest and 25% of the duty as penalty Relying upon C. C. E. & C., SURAT-II Versus MOHAMMED FAROOKH MOHAMMED GHANI 2010 (7) TMI 378 - GUJARAT HIGH COURT - once the partnership firm is visited with penalty, partner need not be visited with any penalty - the amount deposited by the main appellant is enough deposit for hearing and disposing the appeals stay granted.

Summary

Issues: Stay petitions against order in appeal upholding demands, interest, and penalties for illicit removal of finished goods.

In this judgment by the Appellate Tribunal CESTAT AHMEDABAD, the stay petitions were filed against the order in appeal that upheld the demands, interest, and penalties imposed on the appellants for the illicit removal of finished goods from the factory. The adjudicating authority had confirmed the demands, interest, and penalties, alleging illicit removal of goods. The first appellate authority also imposed penalties on the partner and authorized signatory of the appellant, which were subsequently challenged in these appeals.

The counsel for the appellant argued that the entire duty amount, interest, and 25% of the penalty had been paid within thirty days of the original order. Referring to a judgment of the Hon'ble High Court of Gujarat, the counsel contended that the penalty imposed on the partner should not be upheld. Regarding the authorized signatory, it was argued that the penalty should be waived considering his individual and employee status. The counsel requested that the amount already deposited should be considered sufficient for hearing and disposing of the appeals.

After considering the submissions, the Tribunal found that the main appellant had indeed paid the entire duty amount, interest, and 25% of the penalty within the specified time. The Tribunal also agreed with the counsel's argument that once the partnership firm is penalized, the partner need not face additional penalties based on legal precedents. Without delving into the case's merits, the Tribunal deemed the amount deposited by the main appellant as adequate for hearing the appeals. Consequently, the applications for waiving the pre-deposit of the remaining amounts were allowed, and recovery was stayed until the appeals were disposed of. The Tribunal's decision aimed to ensure fairness in the proceedings and provide relief to the appellants during the appeal process.