Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Section 112(b) Customs Act | Penalty Invalid Without Proof of Mens Rea and Physical Possession of Confiscable Goods : CESTAT
CESTAT quashed a ₹10 lakh penalty under Section 112(b) of the Customs Act, ruling that vague third-party statements and absence of proof of knowledge or physical possession of confiscable goods cannot sustain penalty imposition. The decision reinforces that strict compliance with mens rea and possession requirements is mandatory for penal action under the Customs Act.