ORDER
T. Anjaneyulu, Member (J)
1. This is an application under Section 35F of the Central Excise Act, 1944 for granting waiver of pre-deposit and the penalty imposed on the appellant and to stay its recovery.
2. The Managing Director of M/s. Mafatlal Industries Ltd. is the appellant herein assailed the Order of the Commissioner of the Central Excise & Customs dated 28.01.2005.
3. By Show Cause Notice dated 30.03.2001 issued to the company and as well as to this appellant proposes to demand the duty amount stated therein as against the company and proposing penalty under Rule 209A of the Central Excise Rules, 1944 against the appellant.
4. The company approached the Hon’ble Settlement Commissioner for settlement of the case. The Settlement Commissioner had settled the case granting immunities from payment of interest, from imposition of penalty and also from prosecution under the Central Excise Act, as the company admitted its duty liability and making payment thereof. The appellant received a Notice dated 24.11.2004 from the Commissioner of Central Excise, Surat, to attend the personal hearing fixed on 07 12.2004. Accordingly, the appellant attended and filed his written submission. Thereafter, the Commissioner passed an Order-in-Original imposing penalty of Rs. 1,00,000/- on the appellant.
5. The appellant submits that he did not file any application before the Settlement Commissioner being under bonafide belief that the application filed by the company would do the needful and also cover his case. Further it is put forth that when the company was exonerated, the appellant, being the Managing Director, cannot be penalized under Rule 209A of the Central Excise Rules.
6. Having considered that there exists prima facie case in favour of the appellant, he is granted full waiver from deposit of the penalty amount and its recovery is stayed. Application is allowed. Appeal is to come up in its turn.
(Pronounced in Court)