By TIOL News Service

MUMBAI, JULY 24, 2018: THE appellants are partners in the company/partnership firm and have filed appeals against the recovery proceeding initiated by the department for recovery of dues adjudged against company/partnership firm.

The Bench, at the outset, directed the appellants to make submission with regards to maintainability of the appeals.

The appellant submitted that recovery should have been made from the Company first and then only it should have been from the partners; that, therefore,they are in appeal and the same are maintainable.

It is also submitted that there is no dispute in respect of the amount held recoverable against the company/partnership firm.

The Bench considered the submissions and observed -

"5. …Appeals are directed against the amounts to be recovered from the assessees in which the said appellants were partners at the relevant time. This Tribunal as per the Central Excise Act, 1944 is not in a position to adjudicate with regards the dispute between the partners of the Company and the partners in the partnership firm. Since there is no dispute in respect of any amount adjudged against the appellants, the appeals as such are not maintainable in the first instance and is liable to dismissed and I do so."

The appeals were dismissed.

(See 2018-TIOL-2253-CESTAT-MUM)