Proforma credit on photocopies of gate passes: reversal of irregular credit was sufficient, and penalty was remitted.

Proforma credit taken on the basis of photocopies of gate passes, where acceptance had been only provisional subject to later production of the originals, did not justify further punitive action once the credit was reversed to the extent taken on those photocopies. The duty liability was not disputed, and reversal of the irregular credit was treated as sufficient to meet the ends of justice. Penalty was therefore remitted, while the duty-related reversal of credit was upheld.

---

---

Issues: Whether penalty was sustainable where proforma credit had been taken on the basis of photocopies of gate passes accepted provisionally on D-3 declaration, but the original gate passes could not later be produced.

Analysis: The credit had been allowed on a provisional basis subject to production of the original gate passes. The duty liability was not disputed and reversal of the credit to the extent taken on the basis of photocopies was considered sufficient to meet the ends of justice. On the facts, no further punitive consequence was warranted.

Conclusion: The penalty was remitted, while the duty-related reversal of credit was upheld.

---