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TMI Blog2012 (10) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... atory, it was submitted by the appellant that the co-operative sugar factory had taken a decision to ear-mark 2500 quintals of sugar to be sold to the shareholders at concessional rate in proportion to the shares held by them. In accordance with this decision, instead of preparing individual invoices, the appellant prepared a single invoice for 2500 quintals and subsequently the sugar was sold to the share holders. However, since all share holders did not lift the sugar, a quantity of 1000 quintals was left out and this is how the excess stock arose. This claim made by the appellant was not accepted and proceedings were initiated which culminated into confiscation of sugar which was allowed to be released on payment of fine of Rs.9,785/- an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice and substantial portion had already been sold, no detailed investigation was taken up by the officers at all. As soon as the rebuttal was made and excess was explained, it was necessary for the officers to examine the claim then and there since the appellant, being a sugar co-operative union, ought to have necessary records to show the actual sales made to the share holders and the decision taken to allocate the same to the share holders and the quantum of sugar for which each share holder is eligible and the actual quantity lifted etc. No such enquiry was made. Even in the orders passed by the lower authorities, this aspect as to whether the claim made was correct and why the claim is not acceptable, have been discussed at all. While t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me the invoice has been made. However, entire quantity of 2500 quintals of sugar has been cleared on payment of duty and at the time of Panchnama itself and immediately thereafter also and subsequently in reply to the Show Cause Notice before Commissioner (Appeals), the appellants have been very consistent in submitting that quantity of 2500 quintals of sugar was meant for sale to the share holders at concessional rate and 1500 quintals has been sold as such and 1000 quintals remained, the benefit of doubt in the absence of proper investigation has to go to the assessee. 7. In view of this view, I consider that the offence has to be treated as one of procedural irregularity and penalty equal to duty was not warranted. At this stage, ld.Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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