COMMNR. OF CENTRAL EXCISE, CHANDIGARH vs M/S. STESALIT LTD.

The Supreme Court upheld the Tribunal's decision to reduce the penalty imposed on M/s Stesalit Limited from Rs.2,06,000 to Rs.50,000 under Section 11-AC of the Central Excise Act, 1944, for failure to pay duty on copper coils used in the modification of smoothing reactors. The Court emphasized that the respondent did not contest the duty demand but only the penalty's quantum, and the reduction was justified based on the circumstances of the case. The ruling clarified the application of penalties under the Central Excise framework, aligning with the precedent set in Union of India & Ors. Vs. Dharamendra Textile Processors & Ors., (2008) 13 SCC 369.