Order date – 31 October 2022

 Facts –

• The Appellant, Amit Gupta partner MS. A. Kumar Industries, on verification of the finished goods of the firm 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. 
• A show cause notice was issued proposing confiscation of the excess stock, imposition of redemption fine along with penalties and also imposed penalty on the Appellant.

Issue – 

• Whether the partner of firm is also separately liable for penalty? 

Order – 

• The Tribunal observed 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.). 
• Hence, the appellant's appeal is allowed.