No penalty in case of commission of illegal act without mens rea

Last updated: 14 July 2023

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The Delhi High Court has ruled that a penalty cannot be imposed under Section 112(a) of the Customs Act if there's no evidence that the individual knew they were facilitating the import of prohibited goods. The court emphasised that 'mens rea', or a guilty mind, is a necessary element for such penalties. Imposing penalties without this intent could unfairly penalise individuals for innocent actions.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in Rajeev Khatri v. Commissioner of Customs [(Export) (CUSAA 3/2021 & CM APPL. 5517/2021 dated July 4, 2023)] set aside the penalty order passed under Section 112(a) of the Customs Act, 1962 ("the Customs Act") and held that assessee cannot be penalized for abetting the illegal import as there is no evidence that assessee has knowledge of the import of prohibited goods.

Citation :
(Export) (CUSAA 3/2021 & CM APPL. 5517/2021 dated July 4, 2023)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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