Topic

knowledge requirement

6 articlesLatest July 2026
Section 112(b) Customs Act | Penalty Quashed Absent Proof of Knowledge or Physical Possession of Contraband : CESTAT
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Section 112(b) Customs Act | Penalty Quashed Absent Proof of Knowledge or Physical Possession of Contraband : CESTAT

CESTAT rules that penalties under Section 112(b) of the Customs Act cannot be imposed without concrete evidence of the appellant's knowledge or physical possession of illicit goods. The tribunal underscores that mere association with a supplier or failure to prove mens rea invalidates penalty imposition, reinforcing natural justice principles in customs enforcement.

NDPS Act Section 25 | Mere Proximity of Contraband in Parked Vehicle Without Knowledge Does Not Establish Offence: Karnataka HC
Case Law Analysis
|Karnataka High Court

NDPS Act Section 25 | Mere Proximity of Contraband in Parked Vehicle Without Knowledge Does Not Establish Offence: Karnataka HC

The Karnataka High Court held that recovering narcotics from a vehicle parked near an accused’s property, without evidence the accused knew of or consented to its presence, cannot sustain a charge under Section 25 of the NDPS Act. This reinforces that constructive possession requires active control or awareness, not just physical closeness - a critical safeguard for innocent property owners caught in drug enforcement dragnets.

Rule 26 Central Excise Rules | Mens Rea Mandatory for Penalty: CESTAT Sets Aside Penalty for Lack of Knowledge Proof
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Rule 26 Central Excise Rules | Mens Rea Mandatory for Penalty: CESTAT Sets Aside Penalty for Lack of Knowledge Proof

CESTAT rules that penalties under Rule 26 of the Central Excise Rules, 2002 cannot be imposed without establishing the assessee's knowledge or reasonable belief of confiscation liability. The tribunal emphasized that show cause notices must explicitly allege mens rea, failing which penalties are unsustainable. This ruling reinforces due process protections for businesses dealing with excisable goods.