https://www.taxtmi.com/caselaws?id=752613 The HC allowed the appeal and set aside the penalty imposed under Rule 25(1)(b) of Central Excise Rules, 2002 for alleged clandestine removal. The court held that mens rea is essential for invoking Section 11AC of Central Excise Act, 1944, and penalty provisions. Since all goods were properly accounted for with invoices on record and no intention to evade duty was proved by authorities, the penalty was impermissible. The court emphasized that Rule 25 cannot be invoked independently without satisfying Section 11AC requirements, as it operates subject to Section 11AC provisions. en-us Wed, 08 May 2024 00:00:00 +0530 Tue, 14 May 2024 10:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752613 The HC allowed the appeal and set aside the penalty imposed under Rule 25(1)(b) of Central Excise Rules, 2002 for alleged clandestine removal. The court held that mens rea is essential for invoking Section 11AC of Central Excise Act, 1944, and penalty provisions. Since all goods were properly accounted for with invoices on record and no intention to evade duty was proved by authorities, the penalty was impermissible. The court emphasized that Rule 25 cannot be invoked independently without satisfying Section 11AC requirements, as it operates subject to Section 11AC provisions. Case-Laws Central Excise Wed, 08 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752613