1998 (12) TMI 211 - AT - Central Excise

Summary

Issues:
Imposition of penalty for failure to submit duty paying documents (invoices) along with RT 12 returns.

Analysis:
The appellant, a new entrant in the manufacturing line, was penalized for not submitting duty paying documents along with RT 12 returns. The appellant had sought guidance from jurisdictional Central Excise authorities regarding defacing the invoices for Modvat credit. Despite multiple attempts to comply, including sending letters and visiting the Superintendent's office with original documents for defacing, the documents were not processed. The Superintendent issued a show cause notice proposing a penalty under Rule 173Q(DB) for contravention of Rule 57G(4). The penalty was upheld by the Assistant Commissioner and Commissioner (Appeals).

Counter Arguments:
The respondent argued that as per Rule 57G(4), it is mandatory for appellants to annex all invoices with RT 12 returns. Failure to do so justifies the penalty imposed by the authorities. The respondent highlighted that penalties have been upheld in similar cases by the Tribunal and other judicial authorities due to lapses by the assessees. Additionally, there was doubt raised regarding the receipt of letters dated 1-7-1994 and 24-9-1994 by the department.

Judgment:
The Tribunal analyzed the submissions and found that the appellant had made efforts to comply with the requirements. The Assistant Commissioner's order mentioned the letters sent by the appellant, indicating receipt by the department. The Superintendent did not call for an explanation regarding the missing invoices but directed the appellant to file them within three days. Despite the appellant's attempts to deface the documents, a show cause notice was issued instead of assisting the new entrant in fulfilling the requirements. The Tribunal concluded that in the given circumstances, there was no justification for imposing a penalty on the appellant. Therefore, the impugned order was set aside, and the appeal was allowed, leading to the disposal of the stay petition as well.