Case Law Details
A Kumar Industries Vs C.C.E. & S.T. (CESTAT Ahmedabad)
CESTAT find that as per the investigating officer excess stock of 32.15 MT was alleged as against the total stock recorded in RG-1 register of 625.710MT. The appellant have vehemently objected on this difference in the stock merely on the ground that no physical stock taking was conducted and methodology of the stock taking was not disclosed. We find that in this fact I do agree with the Learned Counsel that the adjudicating authority was supposed to give the details of methodology in stock taking and also allowed the cross-examination of panchas. In this fact I am of the considered view that the matter needs to be remanded to the adjudication authority for reconsideration after allowing the cross examination of panchas. As regard appeal of Shri. Amit Gupta partner of M/s A Kumar Industries, I find that without going into the merit, it is settled law that once the penalty is imposed on the partnership firm it’s partner cannot be imposed penalty separately. This issue has been considered and settled by the Hon’ble Gujarat High Court in the case Commissioner of Central Excise vs. Jai Prakash Motwani – 2010 (258) ELT 204 (Guj.).
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
These appeals are directed against Order-In-Appeal whereby the order of the Adjudicating Authority was upheld except reduction of penalties.
1.2 The brief facts of the case are that investigating officer visited factory of the appellant and conducted the stock verification of the finished goods. During the stock verification excess stock of 32.15 MT of MS ingots was found as compared to stock recorded in the stock register. The Panchnama was drawn and statement of Shri. Amit Gupta partner of M/s A Kumar Industries was recorded. Thereafter, a show cause notice was issued proposing confiscation of the excess stock, imposition of redemption fine and penalties. The adjudicating authority in the Order –In -Original confiscated the stock of 32.15 MT MS Ingots valued at Rs. 9,87,005/- and imposed redemption fine of Rs. 2 Lakhs and penalty of Rs. 35000/- and the penalty of Rs. 50,000/- was also imposed on Shri. Amit Gupta partner of M/s A Kumar Industries. Being aggrieved by the Order-In Original both the appellants filed appeals before the Commissioner (Appeals). The Learned Commissioner (Appeals) while passing order- in- appeal taking a lenient view reduced the penalty from 35000 to 10,000/- and on Shri. Amit Gupta from 50,000/- to 20,000/-. However, remaining part of the order was upheld therefore the present appeal filed by the appellant.
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