2002 (10) TMI 650 - AT - Central Excise

Summary

Issues:
1. Demand of duty against the appellants for cancelled invoices.
2. Imposition of personal penalty for not intimating Revenue about invoice cancellations within 24 hours.

Analysis:
1. The appellants issued computerized invoices, some of which were cancelled due to errors. The Commissioner confirmed duty demand on cancelled invoices, alleging removal of excisable goods without payment. However, no evidence of clandestine removal was found. The Commissioner imposed a penalty for not informing the Revenue about cancellations within 24 hours. The appellants argued that since duty was not debited for the cancelled invoices, Rule 173G(2)(vii) did not apply, and thus, no obligation to inform within 24 hours existed. The Tribunal agreed that no duty was debited for the cancelled invoices, and as such, the penalty was unjustified.

2. The Revenue's contention was based on the failure to inform about invoice cancellations within 24 hours. The Tribunal noted that the requirement of intimation within 24 hours applies only if duty has been debited for the cancelled invoices. Since the appellants had the facility to debit duty at the end of the week and had not debited duty for the cancelled invoices, the obligation to inform within 24 hours did not arise. The appellants had submitted lists of cancelled invoices with their returns, indicating compliance. Consequently, the Tribunal found no justification for imposing a penalty on the appellants.

Conclusion:
The Tribunal set aside the impugned Order, ruling in favor of the appellants and granting them consequential relief. The decision was based on the lack of evidence of clandestine removal, the non-applicability of the 24-hour intimation rule due to duty not being debited for cancelled invoices, and the appellants' compliance with submitting lists of cancelled invoices with their returns.