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2019 (2) TMI 1573 - AT - CustomsPenalties on the firm and partner u/s 112(a), Section 114 (iii) & Section 114AA of the Customs Act, 1962 - EPCG License - it is alleged that the appellant had lent his shipping bills so as to enable M/s. POP, Mangalore to count such exports towards export obligation fulfillment under EPCG License of the main noticee i.e. M/s. POP, Mangalore under ‘third party exporter category. Penalty on Sh. Ashok P Muniyar - Held that:- Since the appellant, Sh. Ashok P Muniyar has died during the pendency of the appeal, therefore penalty proceedings against the deceased stand abated. Penalty on the appellant, M/s. Riddhi Enterprises and its partner, Sh. Kamal Kishore Parekh - Held that:- The main notice who has mis-used the EPCG License on the basis of the exports made by the appellant and has also obtained EODC certificate from the DGFT. They have gone to the Settlement Commission and have settled the matter before the Settlement Commission and have paid the liability along with interest - further, the Original Authority has not considered that once the settlement is permitted by the Settlement Commission by the main notice then can penalties be imposed on the co-noticee who bona fidely believe that the export made by them were covered under ‘third party exports’ and counted towards export obligation fulfillment of the EPCG License holder - further, the Original Authority has imposed the penalty on the partner as well as Partnership firm on the same very transaction which is not permitted under law as the Partnership is not a separate legal entity and all the partners collectively known as firm and therefore, the imposition of penalty on the partner as well as Partnership firm is not legally sustainable. Further, the Original Authority has not discussed about the role, acts and omission on the part of the appellant in the SCN which necessitated the imposition of penalties under Section 112(a), Section 114(iii) & Section 114AA all under the Customs Act, 1962 and the requirement to be fulfilled for imposition of penalty. The said sections have also not been brought out specifically in the impugned order. -In view of all these infirmities, this case needs to be remanded back to the Original Authority to pass a denovo order after considering the various submissions made by the appellant and also consider the various decisions which may be relied upon by the appellant in support of their submissions. Appeal allowed by way of remand.
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