2010 (10) TMI 970

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....Appellant. None, for the Respondent. ORDER Nobody appears on behalf of the respondent though served. This appeal was admitted on the following substantial questions of law vide order dated 9-5-2006 :- "(i)   Whether the amount of penalty leviable under Section 11AC of the Central Excise Act, 1944 can be reduced even in cases where evasion of duty is established. (ii) ....

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....w :- "26. In Union Budget of 1996-97, Section 11AC of the Act was introduced. It has made the position clear that there is no scope for any discretion. In para 136 of the Union Budget reference has been made to the provision stating that the levy of penalty is a mandatory penalty. In the Notes on Clauses also the similar indication has been given. 27. Above being the position, the ....

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....ppeal relating to SLP (C) No. 21751 of 2007 are allowed and the excepted appeals shall now be placed before the Division Bench for disposal". 3. We may also point out at this stage that this judgment came up for discussion before the Supreme Court in Union of India v. Rajasthan Spinning & Weaving Mills, 2009 (238) E.L.T. 3 (S.C.) after taking note of the judgment in Dharamendra Textile (su....

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....t there was no discretion with the authority to impose lesser penalty than what is prescribed in the aforesaid provision. 4. Having regard to this law laid down by the Supreme Court in the aforesaid two judgments, we answer the question in the negative i.e. the penalty imposed under Section 11AC of the Act cannot be less than the amount determined to be payable under Section 11A(2) of the ....