GCR No.6 of 2006 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH GCR No.6 of 2006 DATE OF DECISION: March 19, 2010 COMMISSIONER OF CENTRAL EXCISE, DELHI ...PETITIONER VERSUS M/S PRJ SANITARY APPLIANCES(P) LTD. ...RESPONDENT CORAM: HON'BLE MR. JUSTICE ASHUTOSH MOHUNTA. HON'BLE MR. JUSTICE MEHINDER SINGH SULLAR. PRESENT: MR. SUSHIL GAUTAM, ADVOCATE FOR MR. GURPREET SINGH, SR.STANDING COUNSEL FOR THE PETITIONER. NONE FOR THE RESPONDENT. ASHUTOSH MOHUNTA, J.(ORAL) The Customs, Excise & Service Tax Appellate Tribunal, New Delhi (for short 'the Tribunal') has referred the following question of law for adjudication by this Court:- “Whether the penalty limit fixed under Section 11AC of the Central Excise Act, 1944 is maximum and authority has discretion to impose lesser penalty?” The aforementioned question stands squarely answered in Union of India and others vs. Dharmendra Textiles Processors and others, reported as (2008) 306 ITR 277 (SC) and Union of India vs. Rajasthan Spinning & Weaving Mills, reported as 2009(238) ELT 3 (SC), wherein it has been held that once it is held that duty was leviable on the goods then the authority do not have any discretion in reducing the penalty and the GCR No.6 of 2006 -2- same would be equivalent to the duty. Reference is disposed of in the same terms as in Dharmendra Textiles' case (supra) and Rajasthan Spinning & Weaving Mills' case (supra). (ASHUTOSH MOHUNTA) JUDGE March 19, 2010 (MEHINDER SINGH SULLAR) Gulati JUDGE