Commissioner Of Central Excise, ... vs Steelco Gujarat Ltd.

The Supreme Court upheld the demand for Rs. 1,47,00,127/- but reduced the penalty from Rs. 1.50 crores to Rs. 75 lakhs. The Court found that the Tribunal had erred in exercising its jurisdiction under Section 35C of the Central Excise Act, as it had not properly considered the respondent's evidence regarding the plant performance report and its implications on the RG 1 register. The Court held that the Tribunal's rectification of its earlier order was justified, as it addressed a significant omission, thus setting aside the penalty imposed.