https://www.taxtmi.com/caselaws?id=211511 Penalty under Section 11AC of the Central Excise Act, 1944 is mandatory where duty demand based on suppression or undervaluation is upheld, and it cannot be reduced at the appellate stage on an arbitrary basis. Relying on the Supreme Court's interpretation of Section 11AC, the Bombay High Court noted that once the duty liability stood confirmed, the penalty followed the statutory mandate. The tribunal's reduction of the penalty from Rs.31,516 to Rs.15,000 was therefore impermissible and was set aside, leaving the original penalty liability intact. en-us Wed, 09 Feb 2011 00:00:00 +0530 Thu, 11 Oct 2012 17:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211511 Penalty under Section 11AC of the Central Excise Act, 1944 is mandatory where duty demand based on suppression or undervaluation is upheld, and it cannot be reduced at the appellate stage on an arbitrary basis. Relying on the Supreme Court's interpretation of Section 11AC, the Bombay High Court noted that once the duty liability stood confirmed, the penalty followed the statutory mandate. The tribunal's reduction of the penalty from Rs.31,516 to Rs.15,000 was therefore impermissible and was set aside, leaving the original penalty liability intact. Case-Laws Central Excise Wed, 09 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211511