Mens Rea Necessary for Penalty under Central Excise Rules: CESTAT

CCE-Jammu Vs Khyber Industries (P) Ltd (CESTAT Chandigarh) In a significant decision, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chandigarh has addressed the necessity of mens rea (guilty mind) for imposing penalties under Rule 25 of the Central Excise Rules. This verdict comes from the case of CCE-Jammu Vs. Khyber Industries (P) Ltd. 1. Background: The case involves an appeal by the Revenue against an order dated 27.11.2010 issued by the Commissioner of Central Excise, Jammu. The order confirmed a demand of Rs. 1,09,49,725/- against the respondent under Section 11A of the...