2015 (10) TMI 150

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....gaged in the manufacture of processed MMF (P) on job work basis out of the grey fabrics supplied by the merchants On 11-12-2003, the Central Excise Officers during investigation detected clandestine removal of the goods by the assessee. The Adjudicating Authority confirmed the demand of duty of Rs. 15,09,719.00/- alongwith interest and imposed penalty of equal amount of duty on the assessee M/s. Gobinda Processors. It has also imposed penalty of Rs. 1,50,000/- on M/s. Om Prakash Hastimal Gandhi partner of the assessee amongst others (i.e.merchants). By the impugned order, the Commissioner (Appeals) upheld the demand of duty alongwith interest and penalty on the assessee and its partner. It has allowed option to the assessee pay penalty 25% ....

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....Gujarat High Court in the case of Praveen N. Shah (Supra) held that once the firm is penalized, separate penalty not imposable upon partner of firm because the partner cannot be equated with employee of the firm. The relevant portion of the said decision is reproduced below:- "It is not disputed that penalty has been imposed on the firm. The Tribunal [2010 (261) E.L.T. 515 (Tri.-Ahmd.)] has imposed penalty on the partner only on the ground that total amount of duty involved was approximately Rs. 88 lacs and equal amount of penalty has been imposed on the appellant firm. Therefore, penalty imposed on Mr. P. N. Shah, partner of the firm was on the higher side and it has reduced it to Rs. 10 lacs. Penalty of Rs. 87,96,398/- has been imposed....