CESTAT : LB to decide co-noticee's penalty waiver entitlement when noticee absolved by

CESTAT Larger Bench (LB) shall decide whether co-noticee in show cause notice is entitled to immunity from penalty when noticee’s case is settled by Settlement Commission; Notes that penalty was imposed on assessee (co-noticee) u/s 112(b) and 114AA of Customs Act in connection with misdeclaration of imported car against which, assessee contended that it should be absolved from punishment of penalty as case of the main noticee had been settled; Further takes note of assessee’s submission that 2:1 favourable verdict in case of S.K. Colombowala should be considered as LB judgment in view of Delhi HC ruling in P.C. Puri and CESTAT decision in Larsen & Toubro Ltd., and same shall prevail over contrary division bench ruling in K. I. International Ltd.; CESTAT states that majority decision cannot be considered as LB judgment in view of SC ruling in Pankajakshi vs. Chandrika case wherein it was held that reference to Third Member in case of conflicting views between division bench members cannot be considered as LB judgment; Accordingly, in view of conflicting division bench decisions, CESTAT refers matter to President for constitution of LB  : Mumbai CESTAT