Prior written permission for multiple invoice books can defeat penalty where the permission letter is material and overlooked.

Personal penalty for maintaining multiple invoice books at different dispatch points was challenged on the ground that prior written permission had in fact been granted. The Tribunal held that the permission letter produced by the appellant was material and had not been considered by the lower authorities. As the existence of such permission went to the root of the penalty order, the matter required fresh examination. The penalty was set aside and the case was remanded to the original adjudicating authority for de novo adjudication after considering the permission letter.

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Issues: Whether the personal penalty imposed for maintaining different sets of invoice books at various dispatch points without prior permission was sustainable when the appellant produced a letter showing that such permission had been granted.

Analysis: The penalty had been imposed on the premise that the appellant had violated the requirement of prior written permission for using more than one invoice book or set of invoices. The appellant produced a letter from the Deputy Commissioner (Technical) granting the requisite permission, and the Tribunal treated this document as material that had not been considered by the lower authorities. Since the existence of permission went to the root of the penalty order, the matter required fresh examination on the basis of that letter.

Conclusion: The penalty order was set aside and the matter was remanded to the original adjudicating authority for de novo adjudication after considering the permission letter.

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