P.D. TANGRI Vs. COMMISSIONER OF CUSTOMS, HYDERABAD

JUDGEMENT

(1.) THIS is an application filed by the party for waiver of pre -deposit of penalty of Rs. 5,00,000/ - and stay of the recovery proceedings.

(2.) SHRI Rama Sarma, appearing for the appellants, in support of the stay application, submitted that the appellant was designated as Executive Director, but he was not taking any part in the day to day affairs and the Managing Director who was responsible for all the acts done by the company and the Company and the Managing Director are alone responsible for the mis -deeds, and accordingly no penalty can be imposed on the nominated Executive Director. Furthermore, it was submitted that no role of the applicant has been discussed in the impugned order while imposing the penalty. Apart from that, he submitted that his financial position is so bad that in fact, he had filed insolvency petition before the Additional Judge, Small Causes Courts, City Small Causes Courts, Hyderabad and the same is pending. It was also submitted by him that even the Department was also made a party in the insolvency proceedings.

(3.) SMT . Radha Arun, appearing for the Revenue justified the action of the Department in imposing the penalty and submitted that sufficient evidence was brought in records and Department was right in imposing the penalty of Rs. 5,00,000/ -. She also submitted that she has no information whether the main party has filed any appeal or not against the same impugned order.