2015 (12) TMI 1089 - AT - Customs

Imposition of penalty on Director - Held that - Commissioner was of the opinion that penalty shall be imposable on the Managing Director, he did not finally impose. But to rectify his mistake, he issued a Corrigendum on 4.3.2004 imposing a penalty of ₹ 25,000/- on the Managing Director. Penalty being imposable on the basis of mens rea, it should be on a personnel of the Managing Director but not on his designation. Therefore, the Corrigendum which has no force in the eyes of law does not become enforceable - Decided in favour of appellant.

Summary

The Commissioner issued a Corrigendum imposing a penalty on the Managing Director, but it was deemed unenforceable as penalties should be based on the individual's actions, not their designation. The appeal was allowed.