https://www.taxtmi.com/caselaws?id=800525 Penalty under Rule 26 of the Central Excise Rules, 2002 requires that the goods be liable to confiscation and that the person knew or had reason to believe this. Rule 25 requires consideration of the goods' confiscability. Where a show-cause notice neither proposes confiscation nor establishes that the goods were liable to confiscation, and no such finding is recorded, the statutory conditions for a Rule 26 penalty are not satisfied. The penalty is therefore unsustainable and must be set aside. en-us Thu, 01 Oct 2026 00:00:00 +0530 Thu, 08 Oct 2026 08:45:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800525 Penalty under Rule 26 of the Central Excise Rules, 2002 requires that the goods be liable to confiscation and that the person knew or had reason to believe this. Rule 25 requires consideration of the goods' confiscability. Where a show-cause notice neither proposes confiscation nor establishes that the goods were liable to confiscation, and no such finding is recorded, the statutory conditions for a Rule 26 penalty are not satisfied. The penalty is therefore unsustainable and must be set aside. Case-Laws Central Excise Thu, 01 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800525