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TMI Blog2011 (1) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 - Mr.M.Veeraiyan,J. Present for the Appellant: Shri K.P.Singh, SDR Present for the Respondent: Shri Vikrant Karkria, Advocate PER: M.VEERAIYAN These appeals are filed by the department against the order of the Commissioner (Appeals) No.169-170/CE/LDH/2009 dated 23.03.2009., by which the penalties of Rs.2 lakhs imposed on each of the two partners have been set aside. The cross objection No.170-171/09 are connected to these appeals and basically in support of the order of the Commissioner (Appeals). 2. Heard both sides. 3.1 The relevant facts, in brief, are that M/s.Kirpalu Steel Industries is a partnership firm consisting of four partners including Shri Vikash Garg and Shri Ritesh Garg. The firm is engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he partners of the partnership firm. In support of this proposition, he relies on the decision of the Tribunal in the case of Sushant Agarwal vs. Commissioner of Customs (Port), Kolkata reported in 2006 (202) ELT 700. He further submits that these two partners are deeply involved in the clandestine activities and the same has been proved by their admission statements and other evidences collected from the suppliers. Therefore, they are liable to imposition of penalties. He also relies on the decision of the Tribunal in the case of Vishan Shamlal Milwani CCE, Aurangabad reported in 2006 (202) ELT 90 wherein when the partners were involved in a serious violation, separate penalties on the partners have been sustained in addition the penalty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or demanding duty short-levied, short paid etc. Naturally show cause notice has to be issued to person who is liable to pay central excise duty. In the present case, the duty was liable to be paid by the partnership concern. The show cause notice in so far as the same relates to demand of duty under Section 11A is accordingly directed against the partnership firm. In relation to the demand of duty so proposed, the specific roles of the partners have also been mentioned in the show cause notice and penal action was proposed under Rule 26 of Central Excise Rules, 2002. 8. The original authority accepting the payment of duty, interest and 25% of duty demanded as penalty has closed the proceedings against the assessee, namely, the partnersh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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