Quaser Electronics P. Ltd. vs Collector Of Central Excise, Bombay

The appellants challenged the imposition of excise duty and associated penalties. While the Supreme Court upheld the Tribunal's findings on the merits of the excise duty liability, it addressed the issue of the penalty. The Court ruled that since the Tribunal altered the basis for computing the excise duty, the penalty levied by the authorities was no longer justified and was consequently set aside.