Compounding amount - Under Central Excise Act, 1944 - Central Excise Practice Manual (OLD) - Central Excise

Compounding amount - Under Central Excise Act, 1944 Under the compounding rules framed by Central Government, the compounding amounts have been fixed considering the gravity of offence. The compounding amounts fixed are as under:- TABLE Sl.No. Offence [ under Central Excise Act, 1944 ] Offence in details Compounding amount (1) (2) (3) (4) 1. Offence specified under section 9(1)(a) of the Act Contravention of any of the provisions of section 8 or of a rule made under clause (iii) or clause (xxvii) of sub-section (2) of section 37 ; 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 evades the payment of any duty payable under this Act; Up to fifty per cent of the amount of duty evasion, subject to minimum of ten per cent of duty evasion. 3. Offence specified under section 9(1)(bb) of the Act removes any excisable goods in contravention of any of the provisions of this Act or any rules made thereunder or in any way concerns himself with such removal; Upto fifty per cent of the amount of duty evasion, subject to minimum of ten per cent of duty evasion. 4. Offence specified under section 9(1) (bbb) of the Act acquires (bbb) transporting, depositing, possession of, or in any way concerns himself in 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 this Act or any rule made thereunder; Upto twenty five per cent of the amount of duty evasion, subject to minimum of ten per cent of duty evasion. 5. Offence specified under section 9(1)(bbbb) of the Act Contravenes the provisions of this Act or the rules made thereunder in relation to credit of any duty allowed to be utilised towards payment of excise duty on final products; Upto fifty per cent of the amount of CENVAT Credit wrongly taken or utilized, subject to minimum often per cent of said amount. 6. Offence specified under section 9(1)(c) of the Act fails to supply any information which he is required by rules made under this Act to supply, or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; 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 attempts to commit, or abets the commission of, any of the offences mentioned in clauses (a) and (b) of this section; Upto twenty five per of the amount of duty evasion, subject to minimum of ten per cent of duty evasion.