1997 (2) TMI 242 - AT - Central Excise

Summary

Issues:
Violation of procedural rules regarding filing of price list and imposition of penalty.

Analysis:
The appeal was against the order of Collector (Appeals) regarding the clearance of castings of iron and steel without approval of the price list during the relevant period, resulting in the imposition of a penalty of Rs. 1,000. The appellants, engaged in the manufacture of Valves and Cocks, argued that they did not file the price list on time under the impression of being exempted based on a letter from the Collector. They had been clearing goods between their units with proper documentation. They also declared the price of steel castings through letters to the Central Excise authorities. Despite delays in approving the price list by the Department, they paid duty and provided all relevant details. The Department contended that the penalty was justified due to a procedural violation under Rule 173C(6).

Upon review, the Tribunal noted that the appellants had filed the classification list, cleared goods on gate passes with duty payment, and had communicated price details to the authorities. The Collector's letter of 1986, allowing declaration of prices on gate passes, led the appellants to believe they were not required to file a price list post-Budgetary changes. The Tribunal considered the situation a technical lapse and a remediable error, attributing it to a bona fide mistake. Consequently, the penalty was set aside, and the appeal was accepted with a caution for the appellants to be more diligent in the future.