Personal Penalty on Directors Requires Proof of ‘Knowing Involvement’: CESTAT Quashes S. 78A Penalty

HomeIndirect TaxesPersonal Penalty on Directors Requires Proof of ‘Knowing Involvement’: CESTAT Quashes S....

Personal Penalty on Directors Requires Proof of ‘Knowing Involvement’: CESTAT Quashes S. 78A Penalty

Indirect Taxes

Published on

31/12/2025

By Mariya Paliwala

Personal Penalty on Directors Requires Proof of ‘Knowing Involvement’: CESTAT Quashes S. 78A Penalty

🚀 Stay Connected With JurisHour

WhatsApp X Telegram

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a personal penalty of Rs. 1 lakh imposed on a former director under Section 78A of the Finance Act, 1994, holding that the mandatory legal requirements for fastening individual liability were not satisfied. The dispute arose from a show…

Membership Required

You must be a member to access this content.

View Membership Levels

Already a member? Log in here

Mariya Paliwala https://www.jurishour.in/

Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

Tags
Knowing Involvement

Personal Penalty on Directors Requires Proof of ‘Knowing Involvement’: CESTAT Quashes S. 78A Penalty

Membership Required

Latest articles

Investigation Statements Can’t Be Relied Upon Without Following S. 138B Procedure: CESTAT Quashes Customs Penalties

ANTI-NARCOTICS DRIVE IN KERALA – RECOVERY OF SYNTHETIC DRUGS FROM A WOMAN’S PRIVATE PART – THE APPLICABILITY OF SECTION 50 OF THE NDPS ACT,...

China Plans New Gold Import Rules as Bullion Imports Surge

Revenue-Sharing with Restaurants Not Taxable as Business Support Service: CESTAT

More like this

Investigation Statements Can’t Be Relied Upon Without Following S. 138B Procedure: CESTAT Quashes Customs Penalties

ANTI-NARCOTICS DRIVE IN KERALA – RECOVERY OF SYNTHETIC DRUGS FROM A WOMAN’S PRIVATE PART – THE APPLICABILITY OF SECTION 50 OF THE NDPS ACT,...

China Plans New Gold Import Rules as Bullion Imports Surge

About us

Company

Categories