TaxTMI 
TaxTMI 
1992 (11) TMI 111
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....s a Public Limited Company registered under the Companies Act. The Company is engaged in manufacturing activities and, inter alia, manufactures Hermetic Compressors which are liable for payment of excise duty under Central Excises and Salt Act, 1944, On January 15, 1986, the Collector of Central Excise and Customs, Pune served show cause notice upon the Company and the petitioners to explain why penalty should not be imposed under Rule 9(2) and Rule 173Q(1) of the Central Excise Rules. The notice, inter alia, recites that the Company had contravened the provisions of Rule 173(C)(1) of the Rules by suppressing and failing to declare in the price list full particulars of the value realised in respect of clearance of Hermetic Compressors manuf....
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.... that there shall be levied and collected duties of excise oh all excisable goods at the rates, set forth in the Schedule to the Central Excise Tariff Act, 1985. The expression 'manufacture' is defined under Section 2(f) of the Act and includes any process, incidental or ancillary to the completion of a manufactured product. The word 'manufacturer', provides Section 2(f) of the Act, shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in the production or manufacture on his own account. Rule 7 in Chapter III of the Central Excise Rules provides that every person who produces, or manufactures any excisable goods, ....
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.... this connection on the decision of the Division Bench of this Court reported in 1984 Maharashtra Law Journal 117 (Suresh Tulsidas Kilachand and Others v. Collector of Bombay and Others) is appropriate. Shri Desai learned Counsel appearing on behalf of the Department, submitted that though the Company is legal entity, the functions of the Company are performed in accordance with the desire of the Board of Directors and the Executives and, therefore, the Board of Directors and the Executives are liable for payment of penalty. The submission is only required to be stated to be rejected. It is impossible to accept the claim that the penal liability can be enforced against a person in absence of specific provision under the Statute. "Shri Desa....