Reasoned relief from excise penalties is mandatory; unreasoned reduction or deletion of statutory penalties cannot stand.

A tribunal cannot reduce or delete statutory excise penalties without giving reasons and identifying the enabling provision for such relief. Where the order fails to examine the relevant provisions or explain the basis for exercising penalty-relief power, the decision is unsustainable and may be set aside.

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Issues: Whether the Tribunal was justified in reducing and setting aside penalties imposed under the Central Excise enactments without assigning reasons or identifying the statutory basis for such relief.

Analysis: The Tribunal reduced the penalties under several excise provisions and set aside one penalty without explaining the circumstances in which such power could be exercised. The order did not examine the relevant statutory provisions or the assessee's cause, and therefore lacked the reasoning necessary to sustain the relief granted.

Conclusion: The reduction and deletion of penalties could not be sustained and the appellate order was set aside.

Ratio Decidendi: A tribunal granting relief from statutory penalties must support its decision with reasons and with reference to the relevant enabling provision; a penalty order passed without such reasoning is liable to be set aside.

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