Kirit K. Mehta Vs. Commissioner of Central Excise

Kirit K. Mehta vs Commissioner of Central Excise

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai Decided Aug 22, 2007

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Citation: sooperkanoon.com/46062
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai
Judge: T Anjaneyulu
Decided On: Aug 22, 2007
Subject: Other Taxes

Case Summary

AI-generated summary - not the official court judgment text.

Other Taxes

Key legal issue: Other Taxes

Parties & Advocates

Appellant / Petitioner

Kirit K. Mehta

Respondent

Commissioner of Central Excise

Excerpt

.....the case of the appellant is that he was employed as clerk cum manager with m/s. himar fabrics and pkg (p) ltd. controlled and managed by barot family. m/s. shiv plastics pvt. ltd. was established by the same family. since m/s. shiv plastics (p) ltd. was working on very small scale and since mr. mehta had experience in the line of manufacture of h.d.p.e / pp bags and sacks, he was asked to look after production of m/s. shiv plastics (p) ltd. he was appointed as executive director without any share holdings and without any share in their profits and also was without any salary. it is submitted that he was receiving very small sum as fees for attending director's meeting. he further submits that he left the services of m/s. himar fabrics and pkg. (p) ltd. from 11.07.96 and since then he is unemployed. he is not an income tax payer and prays for exoneration.3. the ld. commissioner (appeals) has observed that after issuing show cause notice on 19.6.96 the appellant was no more in service with m/s.himar fabrics and pkg. (p) ltd. it is also found that the appellant is jobless since then and financially suffering. therefore, in view of this background the ld. commissioner (appeals) has reduced the penalty to rs. 10,000/- from rs. 1,00,000/-. the additional commissioner while adjudicating against m/s. himar fabrics and pkg. (p) ltd. and m/s. shiv plastics (p) ltd. confirmed the duty demand, imposed redemption fine and also penalty. penalty was also imposed on the appellant since he was held to be master minded the modus operandi of availing of the benefit of ssi exemption. on perusal of the record no specific role is assigned to the appellant in over tact alleged on his part either in contravening any provision of central excise act or in the evasion of duty. therefore, it is fit case to exonerate the appellant in the levy of the penalty. accordingly, appeal is allowed.

Full Judgment

1. This is an appeal filed by one Shri. Kirit K. Mehta, Managing Director of Shiv Plastics P. Ltd against the Order of Commissioner (Appeals) who reduced the penalty to Rs. 10,000/-.

2. The case of the appellant is that he was employed as clerk cum Manager with M/s. Himar Fabrics and Pkg (P) Ltd. controlled and managed by Barot family. M/s. Shiv Plastics Pvt. Ltd. was established by the same family. Since M/s. Shiv Plastics (P) Ltd. was working on very small scale and since Mr. Mehta had experience in the line of manufacture of H.D.P.E / PP bags and sacks, he was asked to look after production of M/s. Shiv Plastics (P) Ltd. He was appointed as Executive Director without any share holdings and without any share in their profits and also was without any salary. It is submitted that he was receiving very small sum as fees for attending Director's Meeting. He further submits that he left the services of M/s. Himar Fabrics and Pkg. (P) Ltd. from 11.07.96 and since then he is unemployed. He is not an Income Tax payer and prays for exoneration.

3. The ld. Commissioner (Appeals) has observed that after issuing show cause notice on 19.6.96 the appellant was no more in service with M/s.

Himar Fabrics and Pkg. (P) Ltd. It is also found that the appellant is jobless since then and financially suffering. Therefore, in view of this background the ld. Commissioner (Appeals) has reduced the penalty to Rs. 10,000/- from Rs. 1,00,000/-. The Additional Commissioner while adjudicating against M/s. Himar Fabrics and Pkg. (P) Ltd. and M/s. Shiv Plastics (P) Ltd. confirmed the duty demand, imposed redemption fine and also penalty. Penalty was also imposed on the appellant since he was held to be master minded the modus operandi of availing of the benefit of SSI exemption. On perusal of the record no specific role is assigned to the appellant in over tact alleged on his part either in contravening any provision of Central Excise Act or in the evasion of duty. Therefore, it is fit case to exonerate the appellant in the levy of the penalty. Accordingly, appeal is allowed.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Mumb... Same Parties Kirit K. Mehta vs Commissioner of Central Excise Same Subject Other Taxes Same Judge T Anjaneyulu