TaxTMI 
TaxTMI 
recovery of penalty imposed on the director from the refund of company
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....ecovery of penalty imposed on the director from the refund of company<br> Query (Issue) Started By: - Hariharan Sundaram Dated:- 19-9-2016 Last Reply Date:- 20-9-2016 Central Excise<br>Got 7 Replies<br>Central Excise<br>Respected experts, One of my client submitted a refund claim consequent of an order of the tribunal. While sanctioning the refund , the Deputy commissioner has deducted certain am....
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....ount owing to penalty imposed on the director. whether any recovery mechanism avaliable in Central Excise to recover the penalty imposed on the Director of the company from the amount of refund due to the Company? Kindly let your views with circulars / case laws thank you Reply By MARIAPPAN GOVINDARAJAN: The Reply: It cannot be recovered without the consent of the Director. Reply By Rajagopalan....
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.... Ranganathan: The Reply: Sir, Company is a different legal person and Director is a different legal person. Therefore penalty imposed on Director of the company cannot be recovered from the refund sanctioned to the company. Reply By Hariharan Sundaram: The Reply: Sirs, thank you very much for your prompt replies. Sirs, in case of penalty levied on the partner of the unit , whether the same can....
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.... be recovered by the department from the amount owing to the company Reply By YAGAY AND SUN: The Reply: Dear Sir, * Hrushikesh Panda V State of Oriss 1996 (83) ELT 504 (Ori HC). = 1995 (2) TMI 83 - HIGH COURT OF ORISSA AT CUTTACK * Vandana Bidyut Chaterjee v UOI 2012 114 SCL 329 = 2012 (4) TMI 42 - BOMBAY HIGH COURT However, if any personal penalty was imposed on director then company can p....
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....ay it off or Department may adjust it from any amount due on department as refunds. Reply By Rajagopalan Ranganathan: The Reply: Sir, As far as partnership concerns are concerned there is no difference between partnership firm and partners. Therefore penalty imposed on partner can be adjusted against refund payable to the firm. Reply By Rajagopalan Ranganathan: The Reply: Sir, I want to add ....
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....further that Limited Liability Partnership is a company under Companies Act. It will be treated as a company and in its case penalty imposed on partner cannot of recovered from LLP firm. Reply By Ganeshan Kalyani: The Reply: Sir, the liability of partnership firm can be recovered from partners. But company and Directors are different legally, therefor recovery of director cannot be made from the....
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.... refund of the company. Thanks.<br> Discussion Forum - Knowledge Sharing ....