IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION CENTRAL EXCISE APPEAL NO. 77 OF 2006 The Commissioner of Central Excise ... Appellant. V/s. M/s.Nighar Fashion (P) Ltd. ... Respondent. P.S.Jetly for the appellant. None for the respondent. CORAM : V.C.DAGA AND K.K.TATED, JJ. DATED : 10th February 2010. P.C. : Heard learned counsel for the Revenue. None fore the respondents. Perused appeal. 2. This appeal was admitted by an order dated 8th June, 2006 to consider the following substantial question of law: Whether the Tribunal is empowered to reduce the mandatory penalty under section 11AC when the duty amount is not reduced? 3. The learned counsel for Revenue brought to our notice the judgment of the Apex Court in case of Union of India v. Dharmendra Textile Processors, reported in 2008 (231) ELT 3 (SC) followed by another judgment of the Apex Court in case of Union of India v. Rajasthan Spinning & Weaving Mills, reported in 2009 (238) ELT 3 (SC), which are followed by the Division Bench of this Court in case of The Commissioner of Central Excise & Customs v. M/s.Shri Ram Aluminium Pvt.Ltd. in Central Excise Appeal No.199/2006 decided on 30th June, 2009 (unreported) wherein the identical question fell for consideration wherein it has been held that under Section 11AC of the Central Excise Act, 1944 it is not mandatory to prove mens-rea as essential ingredient for levying penalty. 4. The issue raised in the present appeal, in the above circumstances, is covered by the aforesaid three judgments. For the reasons recorded therein, appeal is liable to be allowed. In the result, impugned order is quashed and set aside. The question framed is answered in favour of the Revenue and against the Respondents. Appeal stands disposed of in terms of this order with no order as to costs. (K.K.TATED, J.) (V.C.DAGA J.)