Penalty for incorrect invoice particulars on additional duty credit was held inapplicable for invoices issued before the 4-7-1999 amendment.

Penalty for issuing invoices with wrong particulars of additional duty credit could not be imposed on a registered dealer for invoices issued before the amendment effective from 4-7-1999. The liability to penal action for willfully entering incorrect particulars in invoices relating to additional duty under the Customs Tariff Act arose only from that amendment, and the Board circular confirmed that the penal provisions for wrongfully passing on such credit applied only from that date. As the invoices were issued earlier, Rule 173Q could not be invoked and the penalties were unsustainable.

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Issues: Whether penalty under Rule 173Q of the Central Excise Rules was sustainable against a registered dealer for issuing invoices containing wrong or incorrect particulars in respect of additional duty of customs before the amendment effective from 4-7-1999.

Analysis: The liability to penal action for a registered dealer who willfully enters wrong or incorrect particulars in an invoice relating to additional duty paid under Section 3 of the Customs Tariff Act arose only from the amendment effective 4-7-1999. The invoices in question were issued prior to that date. The Board circular also clarified that the penal provisions for wrongfully passing on credit of additional duty under the Customs Tariff Act applied only from 4-7-1999. On that basis, the penal provision could not be applied to the appellants for the earlier period.

Conclusion: Penalty under Rule 173Q was not imposable on the appellants, and the penalties were unsustainable.

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