2000 (4) TMI 113 - AT - Central Excise

Summary

Issues involved: Appeal against duty demand and penalty imposition on legal heir u/s Rule 173Q of Central Excise Rules due to death of sole proprietor.

Summary:
The appellant challenged an order demanding duty and imposing penalties on M/s. Poonam Industries and the legal heir after the death of the sole proprietor, Shri G.S. Matai. The appellant argued that as the sole proprietor had passed away, the proprietary concern ceased to exist, and thus no duty demand could be made on the legal heir. Citing the absence of provisions in the Central Excise Act or Rules for such cases, the appellant relied on the decision of the Hon'ble Supreme Court in State of Punjab v. Jullundur Vegetables Syndicate, emphasizing the need for specific legal provisions for such assessments. The revenue contended that the legal heir was liable for duty payment based on precedents from the Hon'ble High Courts. After hearing both sides, the Tribunal found merit in the appellant's argument, noting that the show cause notice was issued after the proprietor's death, aligning with the Supreme Court's stance on assessments of dissolved firms. Consequently, the impugned order was set aside, and the appeal was allowed.