2011 (1) TMI 1489 - AT - Central Excise

Recovery of amount jointly and severely on various assessees/appellants - Held that - Tribunal in number of precedent decisions has held that such confirmation of demand jointly and severely on various assessees/appellants is not in accordance with law. In all such earlier matters appeals stand remanded with direction to original adjudicating authority to decide the liability of each individual separately. Matter remanded to Commissioner for de novo adjudication - appeal allowed by way of remand.

Summary

Issues: Delay in filing appeal, Joint and several liability, Remand for de novo adjudication

In the judgment by the Appellate Tribunal CESTAT AHMEDABAD, the issue of delay in filing the appeal was addressed. The appellant, Shri Krishna Kumar Gupta, had filed the appeal 85 days late due to being in jail from 4-9-2009 to 26-2-2010. The Tribunal considered the circumstances and condoned the delay as the appeal was filed within two months of his release from jail. The delay was allowed, and the COD application was accepted.

Regarding the joint and several liability imposed by the Commissioner on Shri Krishna Kumar Gupta and another individual, the Tribunal referred to past decisions where such joint liability was not upheld. Citing a specific case, the Tribunal highlighted that in similar situations, appeals were remanded for separate adjudication of each individual's liability. Following this precedent, the Tribunal set aside the impugned order, unconditionally allowed the Stay Petitions, and remanded the matter to the Commissioner for a fresh adjudication, emphasizing the need to determine the liability of each person separately.

The judgment concluded by disposing of the COD application, Stay Petitions, and appeals in the manner described above. The Tribunal's decision showcased a commitment to upholding legal principles and ensuring a fair and individual assessment of liability in cases involving joint and several responsibility. The judgment serves as a reminder of the importance of due process and the need for precise adjudication in matters of liability and penalties in tax-related cases.