Allahabad High Court
COMMISSIONER, CENTRAL GOODS AND SERVICES TAXversusSH SANJIV KUMAR, MANAGER, M/S PRABHAT ZARDA FACTORY OVERSEAS
- Decided
Holding
The High Court held that the Tribunal's findings were not perverse or against the weight of evidence and therefore dismissed the appeal.
Summary
The Commissioner of Central GST appealed to the Allahabad High Court against an order of the Customs, Excise and Service Tax Appellate Tribunal dated 06.08.2025, which had set aside a personal penalty imposed on Sanjiv Kumar under Rule 29 of the Central Excise Rules, 2017. The appeal raised the question whether the Tribunal erred in cancelling the penalty for tax evasion. The High Court examined the Tribunal's findings that Kumar exercised supervisory functions but did not handle the goods, and found no evidence that the Tribunal's view was against the weight of evidence or perverse. Consequently, the Court saw no ground to interfere with the Tribunal's decision. The appeal was dismissed without costs, and a separate application for condonation of a two‑day delay in filing the appeal was allowed.
Issues considered
- Whether the Appellate Tribunal erred in setting aside the personal penalty imposed under Rule 29 of the Central Excise Rules, 2017.
Legislation cited
- Central Excise Rules, 2017 — s. Rule 29
Subjects
- central excise
- penalty
- Rule 29
- tax evasion
- appellate tribunal
- high court
- delay condonation
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
CENTRAL EXCISE APPEAL DEFECTIVE No. - 10 of 2026
Commissioner, Central Goods And Services Tax
.....Appellant(s)
Versus
Sh Sanjiv Kumar, Manager, M/S Prabhat Zarda
Factory Overseas .....Respondent(s)
Counsel for Appellant(s) : Bijendra Kumar Singh
Counsel for Respondent(s) :
Court No. - 3
HON'BLE SAUMITRA DAYAL SINGH, J.
HON'BLE VIVEK SARAN, J.
1. Heard Sri B.K.S. Raghuvanshi, learned counsel for the revenue and
peruse the record.
Re: Civil Misc. Delay Condonation Application No. 01 of 2026
2. Present appeal has been filed with a delay of 2 days.
3. Cause shown is sufficient. Delay in filing the present appeal is
condoned. Delay condonation application is allowed.
Order on Appeal
4. The present appeal has been filed against the order of the Customs,
Excise and Service Tax Appellant Tribunal, Allahabad dated 06.08.2025
in Excise Appeal No. 70640 of 2025 (Shri Sanjiv Kumar, Manager Vs.
Commissioner of CGST, Noida). By that order, the Tribunal has deleted
the penalty imposed by the opposite party under Rule 29 of the Central
Excise Rules, 2017.
5. The appeal has been pressed on the following question of law :
"(iii) Whether the Hon'ble Tribunal erred in setting aside the personal
penalty imposed on persons involved in committing the offence of tax
evasion, categorically explained and linked with the facts in the Order in
Original, under Rule 29 of the Central Excise Rules, 2017 ?"
CEXAD No. 10 of 2026
2
6. Having heard learned counsel for the revenue and having perused the
record, we find no good ground to interfere in the present appeal. The
findings recorded by the Tribunal is to the effect that the opposite party
Sri Sanjiv Kumar had generally exercised supervisory functions but had
not dealt with the goods. Such finding as stands recorded after consideration
of evidence on record. Merely because one view has been taken, it may not
be enough to allow the High Court to offer any interference with such
findings, in this appeal on a substantial question of law.
7. To the extent it has not been shown that the view taken by the Tribunal
is against the weight of evidence or that is perverse, we find no merit in
the present appeal. It is accordingly dismissed. No order as to costs.
(Vivek Saran,J.) (Saumitra Dayal Singh,J.)
March 19, 2026
Abhilash
Digitally signed by :-
ABHILASH SINGH
High Court of Judicature at Allahabad
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