Introduction - Central Excise Practice Manual (OLD) - Central Excise

Introduction 1.1. To prevent litigation and encourage early settlement of disputes, the Government introduced a scheme in year 2005 providing for compounding of offences against payment of compounding amount. Initially, it was extended to offences under Customs Act, 1962 and Central Excise Act, 1944 . In the year 2012, it has been extended to offences under the Finance Act, 1994 (relating to service Tax) also. 1.2. The term applicant has been defined in the compounding of offences Rules framed under the above said Indirect Tax Statutes. It includes any assessee or any other person, but shall not include,- (i) officers of Central Excise as appointed by Board or Commissioner of Central Excise under Rule 3 of the Central Excise Rules, 2002 , and (ii) officers of Customs as appointed by Board or Commissioner of Customs under section 4 of the Customs Act, 1962.