Appeal Allowed: Penalty under Central Excise Rules, 2002 overturned due to lack of mens rea

The Appellate Tribunal CESTAT Hyderabad allowed the appeal filed by the Managing Director of the appellant against the penalty imposed under Rule 26 of Central Excise Rules, 2002. The Tribunal found the penalty unsustainable due to lack of establishing mens rea and granted consequential reliefs.

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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.

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