Central Excise penalty reduced for a firm; separate partner penalty set aside as unsustainable in partnership context.

Admitted Central Excise violation justified a penalty, but the Tribunal reduced the firm's penalty from Rs. 50,000 to Rs. 25,000 having regard to the facts and value of the goods. It also held that a separate penalty on the partner under Rule 209A was not sustainable, since in a partnership firm it was not legally necessary to treat the firm as distinct from the partner for penalty purposes. The penalty on the firm was therefore reduced, and the partner's penalty was set aside.

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Issues: Whether the penalty imposed on the partnership firm was liable to be reduced, and whether a separate penalty could be sustained on the partner under Rule 209A.

Analysis: The Tribunal noted the admitted violation of the Central Excise law and held that penalty could validly be imposed. However, considering the facts and the value of the goods, the penalty on the firm was reduced from Rs. 50,000 to Rs. 25,000. On the separate penalty on the partner, the Tribunal held that in the case of a partnership firm it was not legally necessary to treat the firm as distinct from the partner for the purpose of imposing penalty, and therefore a separate penalty on the partner was not sustainable.

Conclusion: The penalty on the firm was reduced to Rs. 25,000, and the penalty on the partner was set aside.

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