AI Structured Summary
Not yet generated for this judgment
Judgment
Whether the Appellate-Tribunal for Foreign Exchange was justified in deleting the penalty imposed upon the partners of the firm on the ground that the penalty against the firm has been confirmed is the question raised in this appeal. This Court in the case of Overseas Textiles Corporation v. Special Director, Enforcement Directorate and Anr. (FERA Appeal No. 57 of 2009) decided on 6-9-2012 has held that in the absence of lapses/negligence/mala fides on the partners of the firm in realizing the export proceeds, imposition of penalty, against the partners is unjustified especially when the penalty imposed against the firm has been confirmed. In view of the matter and looking to the facts of the present case, we see no reason to entertain the appeal.
The decision of this Court in the case of Textoplast Industries Vs. Additional Commissioner of Customs, which is relied upon by the Counsel for the revenue is distinguishable on facts. In any event, it is not laid down in that case, that in every case once penalty is imposed upon the firm, penalty must also be imposed upon the partners. Therefore, in the facts of the present case, we see no reason to interfere with the order of the Tribunal. Accordingly, the appeal is dismissed with no order as to costs.