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2007 (7) TMI 456 - AT - CustomsPenalty - Failure to meet export obligation by importer-company - Held that: - It is well settled that the rights and obligations of a limited company are the rights and obligations of that legal person and not of Managers or share holder. In such a case, the liability of a shareholder would be limited to his shareholding, be he a promoter or not - In the present case, the findings are that the Company failed to carry out its export obligation. Therefore, the liabilities will have to be borne only by the Company. There is no finding of fraud, or misappropriation against the present appellant. In such a case, penalty on the officer of the company is not permissible. Section 112 of the Customs Act speaks of “any person, who in relation to any goods, does or omits to do any act”. In the present case, that person is the public limited company and not the individual person (appellant). Therefore, person who attracted the penalty is the limited company. Appeal allowed.
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