Penalty Under Central Excise Rules Can Only Be Imposed On Natural Person And Not Against Artificial Entity: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that the penalty under central excise rules can only be imposed on natural persons and not against artificial entities.The bench of Ramesh Nair and Raju has observed that the department has filed an appeal only against M/s Richardson and Cruddas Limited, and no name. The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal has held that the penalty under central excise rules can only be imposed on natural persons and not against artificial entities. The assessee contended that the penalty under Rule 209A was imposed via the impugned order in connection with the confirmed demand against M/s Richardson and Cruddas Limited. The adjudicating authority in de-novo adjudication imposed the penalty under Rule 209A of the Central Excise Rules, 1944, upon the appellant.