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2019 (7) TMI 630 - AT - Central ExciseImposition of penalty on partners - HELD THAT:- It is settled principle and there are umpteen number of decisions in which it was held that once a firm is penalised, separate penalty is not imposable upon the partner of the firm because partner is not separate legal entity and cannot be equated with the employee of the firm. The Hon’ble High Court in that matter answered the question in favour of the Appellants therein and set aside the penalty on the partners. Similarly, a coordinate Bench of the Tribunal in the matter of M/S NATIONAL IMPEX AND SHRI UMAR T CHAMADIA VERSUS COMMISSIONERS OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX-DAMAN [2015 (12) TMI 1350 - CESTAT AHMEDABAD] has held that penalty on partner is not imposable when the firm is penalised under Rule 25 of the Central Excise Rules, 2002. The authorities below are not justified in imposing the penalty on the partners of M/s. Classic Packaging Industry and therefore the penalties imposed on Mr. Jasbir Singh Siwach and Ms. Kiran S Siwach, partners of M/s Classic Packaging Industry are not sustainable and are hereby set aside. Penalty set aside - appeal allowed - decided in favor of appellant.
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