https://www.taxtmi.com/caselaws?id=775978 The CESTAT New Delhi held that penalties under rule 26 of the Central Excise Rules, 2002, cannot be imposed on the transporter for clandestine manufacture and clearance of Gutkha when the seized goods were found in the transporter's godown at Raipur, not near the manufacturer's premises. The transporter has no legal obligation to ensure goods carried are duty paid unless there is evidence they knew or had reason to believe the goods were liable to confiscation. Since the goods were seized away from the factory and no such knowledge was established, penalties on the transporter and associated parties were set aside. The appeal was allowed. en-us Fri, 01 Aug 2025 00:00:00 +0530 Mon, 04 Aug 2025 08:28:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775978 The CESTAT New Delhi held that penalties under rule 26 of the Central Excise Rules, 2002, cannot be imposed on the transporter for clandestine manufacture and clearance of Gutkha when the seized goods were found in the transporter's godown at Raipur, not near the manufacturer's premises. The transporter has no legal obligation to ensure goods carried are duty paid unless there is evidence they knew or had reason to believe the goods were liable to confiscation. Since the goods were seized away from the factory and no such knowledge was established, penalties on the transporter and associated parties were set aside. The appeal was allowed. Case-Laws Central Excise Fri, 01 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775978