TMI Blog2010 (1) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... Daga, J.]. - Heard learned counsel for the petitioners and learned counsel for the respondents. Perused petitions. 2. Rule, returnable forthwith. Petitions are heard finally by consent of parties. The Facts: 3. These petitions are directed against the order dated 4th August, 2009 by the Customs Excise Service Tax Appellate Tribunal, West Zonal Bench, Mumbai (CESTAT for short) directing the petitioners Mr. Ashokkumar and Mr. Daulatkumar to pre-deposit 25% of the penalty imposed on each of them, they being the directors of M/s. Harisons Steel Pvt. Ltd. Submissions: 4. Learned counsel for the petitioners, in short, submits that imposition of personal penalty on the director is not permissible under Rule 13(1) of Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confiscation and such person, shall be liable to be penalty not exceeding the duty on the excisable goods in respect of which any contravention has been committed, or ten thousand rupees, whichever is greater. (Emphasis supplied.) 7. The aforesaid rule opens with the wording if any person, takes CENVAT credit ...... These words are indicative of the fact that the penalty is imposable on the person who takes Cenvat credit. In other words, the person who has availed CENVAT credit is the only person liable to be visited with the penalty. None of the petitioners has availed CENVAT credit. It is availed by the Company alone; where the petitioners are directors. Therefore, the penalty under Rule 13(1) of the Cenvat Rules i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not been levied or paid or which has been short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice: Provided that where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of fraud, collusion or any willful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, by such person or his agent. The provisions of this sub-section shall have effect, as if for the words one year, the words five years were substituted; (Emphasis supplied) 9. Perusal of the aforesai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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