TaxTMI 
TaxTMI 
2007 (6) TMI 322
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....alent amount of penalty under Section 112(b) read with Section 114(a) of the Customs Act, and also against redemption fine imposed. 2.2 In appeal No. C/1545/05 the assessee is in appeal against confirmation of the demand of Rs. 6,28,983/- and imposition of equivalent amount of penalty under Section 112(b) and 114(a) and also against redemption fine. 2.3 Appeal No. C/1544/05 and C/1548/05 relate to the employees of the firm and they are in appeal against imposition of penalty under Section 112(b) of the Customs Act, 1962. 2.4 Appeal No. C/1546/05 is filed by the partner of the firm against imposition of the penalty under Section 112(b) of the Customs Act, 1962. 2.5 Appeal No. C/1547/05 is filed by one individual again....
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....nted as the firm have already deposited the entire amount of duty involved in this case. He submits that the Tribunal has been holding consistently that once the entire amount of duty is deposited before the issuance of the show cause notice, no penalty is imposable. As regards the penalties imposed on the employees it is his submission that there was no reason to impose any penalty on these employees. As regards the penalty imposed on the partner of the firm it is his submission that the penalty being imposed on the firm, no separate penalty is imposable on the partner. As regards the penalty, in case of the appellant in appeal No. C/1547/05 it is his submission that nothing is brought on record so as to implicate the appellant. Hence impo....
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....ting an amount of Rs. 66,641/-. The penalties imposed on the appellant firm are under the provisions of Section 114(a)/l12(B). Since the penalties imposed on the appellants is a composite penalty, to my mind, the penalties imposed on them can be considered as penalty imposed under Section 114(a) of the Customs Act, 1962 as the penalty is equal to the amount of duty. Since the appellants have accepted their liability and discharged the entire duty liability before the issuance of the show cause notice, there cannot be any penalty on the appellants under Section 114(a) of the Customs Act, 1962. The Larger Bench of the Tribunal in the case of Al-Falah (Exports) (supra) have clearly held as under :- "2.1 In view of the findings hereinabove we ....
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....irm, I find that the issue involved in this case is covered by the decision of the Division Bench in the case of Jaybee Industries (supra) wherein the Tribunal has held as under :- "It is settled law that, where a penalty is imposed on a partnership firm, no separate penalty shall be imposed on any of its partners. Accordingly, we set aside the penalty on the partners." In this case the partner of the firm has been penalized for the account of the firm in appeal No. C/1545/05. Since I have already penalized the firm for the outstanding duty not paid by them, the penalty imposed on the partner is also unwarranted as held by the Division Bench in the case of Jaybee Industries (supra). Respectfully following the division bench's decision in ....