Mandatory penalty under section 11AC bars reduced relief once suppression and duty evasion are established.

Where suppression of facts and non-payment of duty are found, section 11AC of the Central Excise Act, 1944 requires a penalty equal to the duty determined. The Tribunal has no discretion to reduce the penalty below that amount once the statutory conditions are satisfied. The document notes that this principle was already settled by an earlier Division Bench decision and was treated as governing the appeal, which the assessee did not dispute. The issue was therefore answered in favour of the Revenue, confirming that a lesser penalty could not be imposed.

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Issues: Whether, after recording a finding of suppression of facts and non-payment of duty, the Tribunal could impose a penalty lower than the amount of duty payable under the excise law.

Analysis: The issue was treated as covered by an earlier Division Bench decision holding that, where the conditions for invoking section 11AC of the Central Excise Act, 1944 are satisfied, the quantum of penalty equal to the duty determined is mandatory. Once section 11AC applies, neither the adjudicating authority nor the Tribunal has discretion to impose a lesser penalty. The same principle governed the present appeal, and the assessee did not dispute that the question stood answered against it.

Conclusion: The Tribunal had no discretion to reduce the penalty below the duty amount; the question was answered in favour of the Revenue and against the assessee.

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