If requisite mens rea exists, penalty provided under Section 11AC is mandatory

Excise & Customs : If requisite mens rea exists, penalty provided under Section 11AC is mandatory; hence, where Tribunal had reduced penalty despite upholding charge of evasion, matter was remanded back to Tribunal for consideration afresh
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[2014] 50 taxmann.com 304 (Punjab & Haryana)
HIGH COURT OF PUNJAB & HARYANA
Commissioner of Central Excise, Commissionerate, Jalandhar
v.
Mohan Singh & Co.*
ADARSH KUMAR GOEL AND AJAY KUMAR MITTAL, JJ.
C.E.A NO. 73 OF 2007 (O & M)†
SEPTEMBER  27, 2010
Section 11AC, of the Central Excise Act, 1944, read with section 78, of the Finance Act, 1994 and section 114A, of the Customs Act, 1962 - Penalty - For evasion of duty/tax - Department issued notice alleging evasion of duty and confirmed demand along with penalty - Tribunal reduced penalty under section 11AC, while upholding finding of wilful evasion - Revenue argued that penalty equal to duty was mandatory - HELD : If requisite mens rea exists, penalty provided under section 11AC is mandatory - Hence, impugned order of Tribunal was set aside and matter was remanded back for fresh decision in accordance with law [Para 4] [In favour of revenue]