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TMI Blog2016 (12) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... portion of Section 112(a) of the Act is only to make person of first degree in relation to the act or omission strictly liable. Persons who are not directly involved in the act or omission to act, which has led the goods becoming liable for confiscation cannot be made liable unless some knowledge is attributed to them - penalty can be imposed on dormant partner as well as on the firm. Appeal disposed off - decided in favor of revenue. - C.M.A.(MD)No.1560 of 2011 - - - Dated:- 2-12-2016 - MR.JUSTICE M.SATHYANARAYANAN AND MRS.JUSTICE J.NISHA BANU For the Appellant : Mr.S.Renganathan For the Respondent : Mr.R.Nandakumar JUDGMENT (Judgment of the Court was delivered by M.SATHYANARAYANAN, J.) The appellant is the husband of one of the partners of M/s.Shri Jayamuruga Paper Mart, Sivakasi, viz., Smt.Amsa and aggrieved by the impugned order dated 07.10.2011 passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai, had filed this appeal and it was admitted on the following substantial question of law: Whether the Appellate Tribunal was justified in sustaining the penalty on the husband of the dormant partner, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials, has arrived at a finding as to the imposition of penalty on the appellant, by taking into consideration of the fact that his statement would reveal that he had paid excess amount to PPPL than what was covered by the bill and had knowledge that PPPL have suppressed the value of paper and hence, there are evidences to show that SJPM and the individuals had the knowledge about the evasion of duty of PPPL. Therefore, the said authority has passed the following order: ORDER (i) I confirm the duty amount of ₹ 3,76,086/- (Rupees Three Lakhs Seventy Six Thousands and Eighty Six only) (CENVAT-Rs.3,61,240/- + Edu Cess - ₹ 7,335/- + SHE Cess - ₹ 2,031 + Paper Cess - ₹ 5,480) on M/s.Paragon Paper Private Limited under sub section (2) of Section 11A of Central Excise Act 1944. I adjust an amount of ₹ 3,76,086/- (Rupees Three Lakhs Seventy Six Thousands and Eighty Six only) already paid by them on 24.02.2010, 27.03.2010, 23.04.2010 and 21.06.2010 towards the said duty liability. (ii) I impose penalty of ₹ 3,76,086/- (Rupees Three Lakhs Seventy Six Thousands and Eighty Six only) on M/s.Parago Paper Private Limited, under Section 11AC of Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held. (d) The penalty ₹ 1,00,000/- imposed on Shri R.Rajkumar, Director of M/s.Paragon Paper Limited under Rule 26 of Central Excise Rules 2002 is reduced to ₹ 50,000/-. (e) The penalty ₹ 1,00,000/- imposed on M/s.Shri Jaya Muruga Paper Mart, Sivakasi under Rule 26 of Central Excise Rules 2002 is reduced to ₹ 50,000/-. (f) The penalty ₹ 1,00,000/- imposed on Shri N.Chittaranjan, Partner of M/s.Shri Jaya Muruga Paper Mart, Sivakasi under Rule 26 of Central Excise Rules 2002 is reduced to ₹ 50,000/-. (g) The penalty of ₹ 1,00,000/- imposed on Shri K.Seenivasan (H/o.Smt.Amsa, Partner of M/s.Shri Jaya Muruga Paper Mart, Sivakasi) under Rule 26 of Central Excise Rules is reduced to ₹ 50,000/-. (h) Stay petitions also stand disposed accordingly. 4. The appellant herein, aggrieved by the same, filed appeal before the CESTAT and in the grounds of appeal, has stated that he is the husband of the one of the partners of SJPM, viz., Smt.Amsa and for all practical purposes, he was doing the functions as a partner in the Firm and since the Firm has been imposed with penalty for abetting the commission of offence by PPPL and that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty or prohibition under Chapter XVI of the Act. The offences listed out in Section 135(1)(a) of the Act would include within it all acts and/or omission to act on the part of any person in relation to any goods, in any way, knowingly, concerned with misdeclaration of value, fraudulent evasion of duty or evasion of any prohibition either under the Act or any other Act. The list is exhaustive to include all acts/omissions which would render the goods liable for confiscation under Section 111 of the Act for which penalty is provided under Section 112(a) of the Act if they are accompanied with knowledge/mens rea. Thus, the acting or omitting to act leading the goods becoming liable to confiscation would be an offence under Chapter XVI of the Act as it is specified in Section 135(1)(a) of the Act, provided it is done knowingly. Thus, the provisions of Section 140 would apply to such offences. It is pertinent to note that Section 140 of the Act while restricting its application to an offence under Chapter XVI of the Act, does not restrict its application only to prosecutions in criminal Court. Thus Section 140 of the Act could be read into adjudication proceedings resulting in penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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