Penalty and confiscation under Central Excise law could not be sustained through the Additional Duties Act, in view of prior rulings.

Penalty, confiscation and redemption fine under the Central Excise Act could not be sustained by invoking Section 3(3) of the Additional Duties Act. The High Court noted that the issue was already covered by earlier Gujarat High Court and Supreme Court decisions, and held that the Central Excise Act and Rules could not be applied in the manner attempted to justify such levy. The question was answered in favour of the assessee and against the Revenue.

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Issues: Whether penalty, confiscation and redemption fine under the Central Excise Act could be levied by applying Section 3(3) of the Additional Duties Act.

Analysis: The Court noted that the issue was covered by earlier decisions of the High Court and the Supreme Court. On that basis, it held that the provisions of the Central Excise Act and the Rules could not be invoked to sustain penalty and confiscation/redemption fine in the manner attempted, and that such levy was bad in law.

Conclusion: The question was answered in the affirmative in favour of the assessee and against the Revenue.

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