Cumulative penalty on firm and proprietor for the same excise default is not permissible; corporate penalty deleted.

For the same excise contravention, penalty cannot be imposed cumulatively on both the assessee-firm and its proprietor. The Tribunal held that the law permits penalty against either the firm or the proprietor for the same default, but not both simultaneously. It therefore deleted the penalty on the company while sustaining the minimum personal penalty already imposed on the proprietor, leaving liability only to that extent.

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Issues: Whether penalty could be sustained simultaneously on the firm and its proprietor for the same excise default.

Analysis: The order under appeal had confirmed confiscation and redemption fine, but the appellate authority had set aside the penalty on both the company and the proprietor. The Tribunal accepted the Revenue's position that the law does not permit imposition of penalty on both the assessee-firm and its proprietor for the same contravention. It therefore upheld the minimum personal penalty already imposed on the proprietor and restored the consequence only to that extent, while deleting the penalty on the company.

Conclusion: Penalty could not be imposed on both the firm and the proprietor for the same default. The penalty on the company was set aside and the personal penalty on the proprietor was confirmed, in favour of Revenue.

Final Conclusion: The appellate order was modified so that only the proprietor remained liable to the extent of the confirmed minimum penalty, while the corporate penalty did not survive.

Ratio Decidendi: For the same excise contravention, penalty may be imposed on either the assessee-firm or the proprietor, but not cumulatively on both.

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