Prior approval of price lists under central excise rules was mandatory; violation stood, but penalty was reduced.

Clearance of excisable goods without prior approval of the price-list was treated as a violation of Rule 173C(2A) of the Central Excise Rules as it stood at the material time, whether the clearance was on a provisional or formal basis. The order was therefore correct in law on the question of contravention. However, the subsequent approval of the price-lists and the absence of mala fides justified leniency on penalty, so the penalty was reduced to Rs. 3 in each case and the revision application was rejected subject to that modification.

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Issues: Whether clearance of excisable goods without prior approval of the price-list constituted a violation of Rule 173C(2A) of the Central Excise Rules, and whether the penalty imposed could be reduced in the circumstances.

Analysis: Clearance of excisable goods without prior approval of the price-list, whether on a provisional or formal basis, was held to be a clear violation of Rule 173C(2A) of the Central Excise Rules as it stood at the material time. The order in appeal was therefore correct in law. However, the circumstances explained by the petitioners, including the subsequent approval of the price-lists and the absence of mala fides, justified a lenient approach on penalty.

Conclusion: The violation was affirmed, but the penalty was reduced to Rs. 3 each in all cases and the revision application was rejected subject to that modification.

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