Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2016 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1384 - HC - Central ExciseWhether the Appellate Tribunal was justified in sustaining the penalty on the husband of the dormant partner, while sustaining the penalty on the Partnership Firm? - Though his wife is the partner, for all practical purposes, he was acting on her behalf as the partner. Held that: - The said issue is no longer res integra, in the light of the Full Bench judgment rendered by Bombay High Court in the case of M/s Amritlakshmi Machines Work, Mr. N.K. Bramchari, Managing Partner, M/s. Amritlakshmi Machine Works Versus Commissioner of Customs (Import) [2016 (2) TMI 57 - BOMBAY HIGH COURT], where it was held that Simultaneous penalties can be imposed on the firm and the partners under the Act and more particularly under Section 112(a) of the Act. However as the Act itself stipulates, the same would be subject to the parties proving that the contravention has taken place without their knowledge or despite exercise of all due diligence to prevent such contravention. The first 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.
|