Separate penalty on partner after firm penalty under Customs Act held unsustainable; Tribunal's view upheld.

A separate penalty on a partner was held unsustainable where penalty had already been imposed on the firm under the Customs Act, 1962. The Tribunal relied on binding precedent to conclude that once the firm was penalised, a further penalty on the partner could not be sustained. The Gujarat HC agreed that the Tribunal had correctly applied the earlier decision and found no contrary ground to disturb that view, so the challenge to the Tribunal's order failed and the separate penalty was not interfered with.

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Issues: Whether a separate penalty could be imposed on a partner when penalty had already been imposed on the firm under the Customs Act, 1962.

Analysis: The Tribunal had held, relying on binding precedent, that once penalty is imposed on the firm, a separate penalty on the partner is not sustainable. The appeal challenged that view, but the High Court found that the Tribunal had correctly applied the earlier decision and that no contrary ground was made out.

Conclusion: The challenge to the Tribunal's order failed and the separate penalty on the partner was not interfered with.

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