ORDER
C.N.B. Nair, Member (T)
1. This appeal relates to imposition of penalty of Rs. 25,000.00 and duty demand of Rs. 7,081 plus cess of Rs. 186.00. The charge in the show cause notice was that the appellant had removed two consignments twice under same invoice numbers, namely, invoice Nos. 117 and 118, dated 2-7-1995.
2. Arguing the case for admission, learned Counsel, Shri Alok Arora submits that the only evidence in support of the allegation of clandestine removal is that two copies of the same invoices are available and that they were made in the name of two parties, namely, United Packaging and Bansal Packers. Shri Arora explains that both the consignments were actually sent to Bansal Packers. The invoices came to be written first by the factory clerk by mistake (on account of hearing the name wrongly in the name of United Packaging) in the name of United Packaging, though no supplies were made to them. Supplies were made only to Bansal Packers. Thus, in fact, there were no two removals against the same invoice. He submits that there is no evidence to substantiate the charge of clandestine removal as there is not even allegation of unaccounted production and receipt of goods so produced. In fact, it is admitted position that United Packaging had stated that they did not receive the goods. Shri Arora submits that in the absence of any evidence relating to clandestine production and sale, demand of duty and imposition of heavy penalty are not justified at all. The only omission is that of not cancelling the invoices prepared in the name of United Packaging as the supply did not take place.
3. Heard learned D.R., Shri T.A. Arunachalam. He reiterates the findings in the impugned order and submits that the appellants have not fully explained how the mistake occurred or how the various copies of the invoices were disposed of.
4. I have perused the records and have considered the rival submissions. In view of the fact that evidence in favour of the appellant has not been given due consideration in the proceedings, the appeal is admitted. The facts involved in the case being few and the amount involved being small, the appeal itself is taken up for disposal as requested by the learned Counsel for the appellant. I find that there is no evidence to support the finding of clandestine removal either by way of evidence regarding clandestine manufacture or receipt of the goods by the buyer. In the circumstances, the demand of duty is set aside. The offence, in the circumstances, is one of failure to observe the proper procedure of cancelling invoices which are not used for clearance of goods. Accordingly, penalty is also reduced to Rs. 2,000.00. Ordered accordingly.