COMMISSIONER OF C. EX. Vs. VIKASH GARG

JUDGEMENT

(1.) THESE appeals are filed by the department against the order of the Commissioner (Appeals) No. 169 -170/CE/LDH/2009, dated 23 -3 -2009, by which the penalties of Rs. 2 lakhs imposed on each, of the two partners have been set aside. The cross objection No. 170 -171/09 are connected to these appeals and basically in support of the order of the Commissioner (Appeals).

(2.) HEARD both sides.

(3.) LEARNED SDR submits that the individual partners of the partnership firm are separate legal entities who are different from the partnership firm. Merely because the partnership firm has been imposed a penalty it does not mean that no penalty can be imposed on the partners of the partnership firm. In support of this proposition, he relies on the decision of the Tribunal in the case of Sushant Agarwal v. Commissioner of Customs (Port), Kolkata reported in : 2006 (202) E.L.T. 700 : 2008 (10) S.T.R. 529 (T). He further submits that these two partners are deeply involved in the clandestine activities and the same has been proved by their admission statements and other evidences collected from the suppliers. Therefore, they are liable to imposition of penalties. He also relies on the decision of the Tribunal in the case of Vishan Shamlal Milwani v. CCE, Aurangabad reported in : 2006 (202) E.L.T. 90 wherein when the partners were involved in a serious violation, separate penalties on the partners have been sustained in addition the penalty on the partnership firm.