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2024 (4) TMI 44 - AT - CustomsValidity of proceedings against importer when the sole proprietor of the firm had expired - mis -declaration and short payment of duty - imposition of penalty on appellant - HELD THAT:- It is found that no proceedings can continue under the Customs Act in case when the sole proprietor, Shri Prahlad Agarwal of M/s Ganpati Enterprises, on 04.03.2010 expired and the Death Certificate was also placed before the adjudicating authority. As the sole proprietor has passed away, then the proceedings against the importer, M/s Ganpati Enterprises, abates and there is no provisions under the Customs Act, 1962 to continue the proceedings against the the legal heir, Shri Ritesh Agarwal in the impugned proceedings as held by the Hon’ble Apex Court in the case of SHABINA ABRAHAM AND OTHERS VERSUS COLLECTOR OF CENTRAL EXCISE & CUSTOMS [2015 (7) TMI 1036 - SUPREME COURT], wherein the Hon’ble Apex Court has held Section 6 of the Central Excises Act, which prescribes a procedure for registration of certain persons who are engaged in the process of production or manufacture of any specified goods mentioned in the schedule to the said Act does not throw any light on the question at hand as it says nothing about how a dead person’s assessment is to continue after his death in respect of excise duty that may have escaped assessment. Thus, no proceedings can continue against the importer, M/s Ganpati Enterprises and Shri Ritesh Agarwal, who is the legal heir of the proprietor of M/s Ganpati Enterprises. Imposition of penalty on Shri Jagdish Prasad Khaitan - HELD THAT:- There is no role involved in the import of the impugned consignment by M/s Ganpati Enterprises as he was involved only at the time of delivery of the goods released provisionally, therefore, no nexus has been proved by the Revenue against Shri Jagdish Prasad Khaitan. Accordingly, no penalty is imposable on Shri Jagdish Prasad Khaitan. The impugned order is set aside and the appeal filed by M/s Ganpati Enterprises abates and the appeals filed by Shri Ritesh Agarwal and Shri Jagdish Prasad Khaitan, are allowed.
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