TMI Blog2018 (4) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... e of interpreting these provisions, bring within the network, the legal heirs who are not the person chargeable to duty under the Act. Appeal allowed - decided in favor of appellant. - APPEAL No. E/53730/2014-EX[DB] - FINAL ORDER NO. 70384/2018 - Dated:- 22-2-2018 - Mr. Anil Choudhary, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Shri Hrishikesh (Amicus Curiae) Adv., for Appellant Shri Pradeep Kumar Dubey (Supdt.) AR, for Respondent Per: Anil Choudhary The above stated appeal is arising out of Order-in-Original No.34/ Commr. / LKO/ CX/2013-14 dated 24/03/2014 passed by Commissioner, Central Excise, Lucknow. 2. The brief facts of the case are that M/S Sudhir Tobacco Company - Propri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/- alongwith interest on the appellant. Further, the Adjudicating Authority imposed penalty of ₹ 67,59,091/- on the appellant under Rule 25 of Central Excise Rules, 2002 read with Section I IAC of Central Excise Act, 1944. Further, the authority also confirmed confiscation of nos. of cigarettes under Rule 25 of Central Excise Rules, 2002. Further, penalty of was imposed on Shri Pankaj Sharma, authorized signatory under Rule 26 of Central Excise Rules, 2002. However, the Adjudicating Authority ordered for release of cut tobacco amounting to ₹ 16,500/ seized on 03/10/2012. 5. Aggrieved by the aforesaid order, the appellant preferred appeal before this Tribunal. 6. While the matter was pending before this Tribunal, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he business or trade in whole or in part is succeeded by his legal heir. In case, if aforesaid business is not succeeded by the legal heir, then no recovery proceeding can be initiated against them. The Learned Counsel, placed reliance on- Shabina Abraham v. CCE C 2015 (322) E.L.T. 372 (SC) CCD, Bangalore v. Dhiren Gandhi 2012 (27) S.T.R. 452 (Kar.) Gaurav Agarwal v. Deputy Commissioner, CE 2017-TIOL-664-HC-MUM-CX. 10. Heard the Learned DR, who placed reliance on the submissions made by the Department vide letter dated 02/11/2016. 11. Having considered the rival contentions and on perusal of record and relied upon case laws, we find that instant case is covered by the judgment of Hon'ble Karnataka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ership firms and association of persons. May be in very few instances, individuals undertake such commercial adventure. In all the cases of such commercial activity being camied on, except that of an individual, the death of any person who is involved in the manufacturing activity, has no impact on the business or manufacturing activity. Even after his death, the manufacturing activity goes on, the legal entity which is carrying on the business is not disrupted and the activity is continued without any interruption. In the case of an individual, on his death, the manufacturing activity comes to an end. To hold his legal heirs liable for the dues under the Act from the manufacturer who is the person who is charged with the duty to pau tax, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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