Case Law Details
Commissioner of CGST And Central Excise Vs Ashirwad Foundries Private Limited And Anr (Calcutta High Court)
Whether central excise can move against legal heirs of a deceased person to recover the penalty imposed under Act.
The Division bench of Calcutta High Court in this case was dealing with an important matter where the Department filed an application before the Hon’ble Division bench for substituting the name of the legal heirs of the respondent assessee in the Appeal which was filed by it against the order of CESTAT which had given relief to the assessee by allowing the appeal relating to imposition of penalty on director of the company when the offence was alleged to have been committed by the company.
High Court at Patna in the case of Bhagwan Banka & Ors. Vs. R.B. Sinha & Ors., reported at 1986(26) ELT 890 (Pat.) decision does not deal with the liability of a director; It deals with certificate proceedings and is thus distinguishable on facts.
The assessee’s counsel argued that there was no provision in the Central Excise Act to proceed against a dead person when it comes to continuing proceeding under the Act in a situation like this. The division bench rejecting the department’s appeal in view of the decision of the Supreme Court in the case of SHABINA ABRAHAM AND OTHERS Versus COLLECTOR OF CENTRAL EXCISE AND CUSTOMS; (2015) 10 SCC 770(SC) granted relief to the assessee by not allowing substitution of the name of the legal heirs.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
