2026-VIL-1562-CESTAT-MUM-CE
  1. Home
  2. 2026-VIL-1562-CESTAT-MUM-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Penalty for receipt of goods without duty – Liability of distributors to verify payment of excise duty – Appellant trader purchased goods from manufacturer who had cleared goods without payment of central excise duty while claiming exemption under relevant notification. Appellant as distributor sold the goods to ultimate buyers - Show Cause Notice alleged that appellant abetted evasion of duty and proposed penalty under Rule 26 of Central Excise Rules, 2002. Appellant submitted that as mere distributor of goods from manufacturer - Whether a distributor can be held liable for penalty when goods have been cleared without payment of duty by the manufacturer and the distributor is unaware of non-payment of duty at the factory gate - HELD - A distributor who purchases goods from the manufacturer is not under legal obligation to verify payment of duty at the manufacturer's end and cannot be held liable for violation committed by the manufacturer. The liability for payment of central excise duty lies exclusively with the manufacturer and not with the buyer - A mere suspicion based on adjustment of rent and business relationship does not establish that the distributor had knowledge of non-payment of duty at the time of acquisition of goods. The legal principle clearly dictates that the buyer can never be said to have violated any provision of law merely because the manufacturer did not discharge duty liability - The order imposing penalty on the distributors is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?