Rule 5 - Fixation of the Compounding amount - Central Excise (Compounding of Offences) Rules, 2005

1 [5.Fixation of the compounding amount.- For the purpose of compounding of offences under the provisions of the Act, the compounding amount shall be as provided in the following Table, namely:- TABLE Sl.No. Offence Compounding amount (1) (2) (3) 1. Offence specified under section 9(1)(a) of the Act Rupees fifty thousand for the first offence and to be increased by hundred per cent of this amount for each subsequent offence. 2. Offence specified under section 9(1)(b) of the Act Up to fifty per cent of the amount of duty evasion, subject to minimum of ten percent of duty evasion. 3. Offence specified under section 9(1)(bb) of the Act Upto fifty per cent of the amount of duty evasion, subject to minimum of ten percent of duty evasion. 4. Offence specified under section 9(1)(bbb) of the Act Upto twenty five per cent of the amount of duty evasion, subject to minimum of ten percent of duty evasion. 5. Offence specified under section 9(1)(bbbb) of the Act Upto fifty per cent of the amount of CENVAT Credit wrongly taken or utilized, subject to minimum of ten percent of said amount. 6. Offence specified under section 9(1)(c) of the Act Rupees fifty thousand for the first offence and to be increased by hundred per cent of this amount for each subsequent offence. 7. Offence specified under section 9(1)(d) of the Act Upto twenty five per of the amount of duty evasion, subject to minimum of ten percent of duty evasion."] Provided that if a person has, in respect of same goods, committed offences falling under more than one category specified above and where amount of duty evasion or amount of CENVAT Credit wrongly taken or utilized is same for all such offences, the compounding amount, in such cases, shall be the amount determined for the offence for which a higher compounding amount has been prescribed. *********************** Note : 1. Has been substituted vide Notification No. 42/2007 CE (NT) dated 27/12/2007 , before it was read as, " Fixation of the Compounding amount .- For the purpose of compounding of offences under the various provisions of the Act, the compounding amount shall be as provided herein below,- Sl.No. Offence Compounding amount 1 Offence specified under section 9(1)(a) of the Act Rupees fifty thousand for the first offence and to be increased by hundred per cent of this amount for each subsequent offence. 2 Offence specified under section 9(1)(b) of the Act Upto twenty per cent of market value of goods or Rs. Ten lakhs whichever is higher. 3 Offence specified under section 9(1)(bb) of the Act Upto twenty per cent of market value of goods or Rs. Ten lakhs whichever is higher. 4 Offence specified under section 9(1)(bbb) of the Act Upto twenty per cent of market value of goods or Rs. Ten lakhs whichever is higher. 5 Offence specified under section 9(1)(bbbb) of the Act Upto hundred per cent of such credit. 6 Offence specified under section 9(1)(c) of the Act Rupees fifty thousand for the first offence and to be increased by hundred per cent of this amount for each subsequent offence. 7 Offence specified under section 9(1)(d) of the Act Upto twenty per cent of market value of goods or Rs. Ten lakhs whichever is higher."