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Informative

CESTAT Quashes ₹45 Lakh Penalty Under Rule 26: No Penalty Without Goods’ Confiscation

Update / Judgement Date

27 Nov 2025

Source

Taxscan

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

1 min read

Income Tax

CESTAT set aside a ₹45-lakh penalty imposed under Rule 26, observing that the rule applies only when goods are liable to confiscation. Since no confiscation occurred, penalty provisions were inapplicable. The ruling reinforces that penalties cannot stand independently without primary charges being established.