Collector Of Central Excise, Ahmedabad vs Orient Fabrics Pvt. Ltd

The Supreme Court held that the provisions of the Central Excise Act cannot be applied for imposing penalties or confiscating goods under the Additional Duties of Excise (Goods of Special Importance) Act, 1957, as the Act does not create any liability for penalties. The Court emphasized that Article 265 of the Constitution mandates that no tax shall be levied or collected except by authority of law, and since the Act only provides for additional duties without penal provisions, the confiscation proceedings against the respondents were deemed unwarranted. The appeal against the Tribunal's decision was thus upheld, confirming that the authorities lacked jurisdiction to impose penalties in this context.