Commnr. Of Central Excise, Chandigarh vs M/S. Stesalit Ltd

The Supreme Court held that the Customs, Excise and Service Tax Appellate Tribunal erred in reducing the penalty imposed under Section 11-AC of the Central Excise Act, 1944, for non-payment of duty on copper coils used in the modification of smoothing reactors. The Court emphasized that the Tribunal must adhere to the legal principles established in Union of India & Ors. Vs. Dharamendra Textile Processors & Ors., (2008) 13 SCC 369, which restricts its jurisdiction to alter penalty amounts without sufficient justification. Consequently, the Court set aside the Tribunal's order and restored the original penalty imposed by the adjudicating authority.