2016 (8) TMI 1399 - AT - Central Excise

Penalty u/r 26 of Central Excise Rules 2002 - Held that - The impugned order has ordered penalty only for the reason that he has signed the declaration. In our opinion such action by itself is not sufficient and mens rea has to be established for imposing penalty - penalty not warranted - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT Hyderabad allowed the appeal filed by Sh. C. Vijaymohan, the Managing Director of the appellant, against the penalty of Rs. 5,00,000 imposed on him under Rule 26 of Central Excise Rules, 2002. The Tribunal found that the penalty was imposed without establishing mens rea, making it unsustainable. The appeal was allowed with consequential reliefs.