In Brief
The Central Excise Department had raised three duty demands against a printing company, totalling Rs. 99,83,882. The lower adjudicating authority confirmed all demands and imposed penalties equal to each demand. On appeal, the Tribunal set aside one demand of Rs. 79,39,162 but upheld two demands totalling Rs. 40,44,720. However, the Tribunal reduced the total penalty to only Rs. 20 lakhs. The Supreme Court held that under Section 11AC of the Central Excise Act, penalty must equal the duty determined. Since the Tribunal upheld duty of Rs. 40,44,720, the penalty must also be Rs. 40,44,720. The appeal was partly allowed, with the respondent required to pay the additional penalty balance within two months."
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