Penalty for clearing goods at an earlier approved price upheld, but separate penalties were not justified.

Clearing goods on the basis of an earlier approved price, despite filing and obtaining approval of a higher price list, was treated as improper conduct warranting penalty. Payment of duty only after the show cause notice, coupled with a request that no penalty be imposed, did not negate the default. The same lapse, however, did not justify separate penalties under different rules, so the penalty was sustained but reduced in amount.

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Issues: Whether penalty was warranted for clearing goods on a lower approved price despite approval of a higher price list, and whether the penalty amount required reduction.

Analysis: The assessee had continued to clear goods on the basis of the earlier approved price even after filing and obtaining approval of a higher price list. The duty was paid only after the show cause notice, and the response was coupled with a condition that no penalty should be imposed. The conduct was found improper and the imposition of penalty was upheld. At the same time, the same default did not justify separate penalties under different rules.

Conclusion: Penalty was justified, but the quantum was liable to be reduced from Rs. 5,200/- to Rs. 2,000/-.

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