Union Of India (Uoi) vs Dharamendra Textile Processors

The Supreme Court addressed the interpretation of Section 11AC of the Central Excise Act, 1944, and held that mens rea is not a necessary requirement for imposing penalties under this section. The Court clarified that the imposition of penalties under Section 11AC and Rule 96ZQ(5) is mandatory and does not require proof of intention to evade payment of duty. The judgment emphasized that the adjudicating authority must impose penalties equal to the determined duty without discretion, affirming the statutory nature of these provisions.