Central Excise - Penalty on MD - By name or Designation?
IN a recent order the CESTAT observed,
By order dated 23.12.2003, although the Commissioner was of the opinion that penalty shall be imposable on the Managing Director, he did not finally impose. But to rectify his mistake, he issued a Corrigendum on 4.3.2004 imposing a penalty of Rs.25,000/- on the Managing Director. Penalty being imposable on the basis of mens rea, it should be on a personnel of the Managing Director but not on his designation. Therefore, the Corrigendum which has no force in the eyes of law does not become enforceable for which the appeal is allowed.