TaxTMI 
TaxTMI 
2010 (7) TMI 378
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....l is justified in law and has committed a substantial error of law in confirming the order of the learned Commissioner (Appeals) setting aside the penalty imposed on the partners of a partnership firm under Section 112 of the Customs Act, 1962 despite the partners having willfully and knowingly acted in a manner to facilitate in clearance of the goods in a clandestine manner and despite having dealt with the goods which they knew or had reason to believe were liable to confiscation under Section 111 of the Act? (2) Whether in the facts and circumstances of the case, the Tribunal is justified in law in rejecting the appeal of the revenue and confirming the order of the learned Commissioner (Appeals) without interfering with the issue ....
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....ilitated the clearance of the goods in a clandestine manner and despite having dealt with the goods which they knew or had reason to believe were liable to confiscation under Section 111 of the Act. 5. As can be seen from the order of Commissioner (Appeals), Commissioner (Appeals) after appreciating the evidence on record, has held that merely because the respondents had paid duty before the issuance of show cause notice would not absolve the respondents from the liability of removing the goods without payment of duty. However, considering the fact that the duty had been deposited prior to issuance of show cause notice, Commissioner (Appeals) was of the view that the same could be considered as a mitigating factor for reducing the pe....
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....evied on the firm for contravention of any provision of the Act or the Rules framed thereunder, it amounts to levy of penalty on the partners, hence, there would be no question of penalizing the partners separately for the same contravention, unless the intention of the legislature to treat the firm and partners as distinct entities is borne out from the statute itself, as in the case of the Income-tax Act, 1961. Whenever the legislature intends to treat the partners and the firm as separate entities it expressly provides for the same. This is apparent when one sees Section 140 of the Act which makes provision for 'Offences by companies'. The Explanation below Section 140 which is relevant for the present purpose reads thus : 'Explanation ....