Rule 26 - Penalty for certain offences - Central Excise Rules, 2002

26. Penalty for certain offences.- 1 [(1)Any person who acquires possession of, or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confiscation under the Act or these rules, shall be liable to a penalty not exceeding the duty on such goods or rupees 1 [two thousand rupees,] whichever is greater.] 3 [Provided that where any proceeding for the person liable to pay duty have been concluded under clause (a) or clause (d) of sub-section (1) of section 11AC of the Act in respect of duty, interest and penalty, all proceedings in respect of penalty against other persons, if any, in the said proceedings shall also be deemed to be concluded.] 2 [(2) Any person, who issues- (i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) any other document or abetsin making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made there under like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater.] ******************** Notes : 1. Rule 26, has been re-numbered as sub-rule (1) thereof, and in sub-rule (1), as so re-numbered, vide NotificationNo.8/2007 CE (NT) dated 1/3/2007 and reduction of penalty from Rs. Ten thousand to two thousand, with effect from the date on which the Finance Bill, 2007 receives assent of the President (i.e. 11-5-2007) 2. After sub-rule(1) as so re-numbered, the above sub-rule has been inserted vide NotificationNo.8/2007 CE (NT) dated 1/3/2007, with effect from the date on which the Finance Bill, 2007 receives assent of the President (i.e. 11-5-2007) 3. Inserted vide Not. 08/2016 - Dated 1-3-2016 . w.e.f. 1.3.2006