COMMNR. OF CENTRAL EXCISE, HYDERABAD-III vs M/S. PRUDENTIAL SPINNERS LTD. — C.A. No. 4420/2003

Case Summary: CA No. 004420/2003 The Supreme Court allowed the Commissioner of Central Excise's appeal against M/S. Prudential Spinners Ltd. The Tribunal had reduced the excise duty evasion penalty from Rs. 17,06,632 to Rs. 1 lakh based on the company's one-to-two day payment delay and prior duty payment. The Court held that under Section 11-AC of the Central Excise Act, once duty evasion is established, penalty is mandatory and equal to the determined duty—no discretion exists for reduction. The Tribunal's order was set aside and the Commissioner's original order restored, with no costs awarded. This case analysis is maintained by casestatus.in based on publicly available court records.