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S.M. Mohamed Ibraim and Co. and Kalaiman Tobacco Factory Vs. the Superintendent of Central Excise and ors. - Court Judgment

LegalCrystal Citation
SubjectExcise
CourtChennai High Court
Decided On
Case NumberWrit Appeal No. 14 of 1974
Judge
Reported in1979(4)ELT166(Mad)
AppellantS.M. Mohamed Ibraim and Co. and Kalaiman Tobacco Factory
RespondentThe Superintendent of Central Excise and ors.
DispositionAppeal allowed
Excerpt:
- .....in this case is whether, where the firm has to furnish security to secure the proper working of a warehouse stocking tobacco to the value of rs. 50,000/-, it should be executed by the firm or in that event, each partner should produce a solvency certificate individually.2. it seems to us that having regard to the purpose of the bond, it will be more than ample if the firm executes a bond to secure the proper working of the warehouse to the value of rs. 50,000/-the security being tested. such security may be offered by the firm itself on the basis of its assets and if these assets of the firm will suffice to secure that amount, there is no need whatever to ask for solvency certificate of each of the partners separately. the department could proceed on those lines. there will be a.....
Judgment:

1. The only point which calls for decision in this case is whether, where the firm has to furnish security to secure the proper working of a warehouse stocking tobacco to the value of Rs. 50,000/-, it should be executed by the firm or in that event, each partner should produce a solvency certificate individually.

2. It seems to us that having regard to the purpose of the bond, it will be more than ample if the firm executes a bond to secure the proper working of the warehouse to the value of Rs. 50,000/-the security being tested. Such security may be offered by the firm itself on the basis of its assets and if these assets of the firm will suffice to secure that amount, there is no need whatever to ask for solvency certificate of each of the partners separately. The Department could proceed on those lines. There will be a direction accordingly.

3. The appeal is allowed in those terms. No. costs.


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