INTEREST AND PENAL PROVISIONS - Under the Central Excise Act, 1944: - Central Excise Practice Manual (OLD) - Central Excise

IV. INTEREST AND PENAL PROVISIONS (i). Under the Central Excise Act, 1944: Section of the Act Contravention Quantum of Interest/ Penalty/ Other Sec. 9 (i) Contravention of Sec. 8 - Restriction on possession of excisable goods or variety of such goods as notified; (ii) transport of prohibited excisable goods; iii) Failure to obtain registration by specified persons; (iv) Evasion of duty payment; (v) Removal of excisable goods in violation of Central Excise Act or Rules made thereunder; (vi) Possession, transport, deposit, keeping, concealment, sales and purchase of goods liable to confiscation; (vii) Contravention of provisions relating to Cenvat credit; (viii) Failure to give required information or supply of false information; (ix) attempt to commit, or abet the commission of any of the offences mentioned above; (a) If duty involved exceeds Rs.1 lakh: upto 7 years Fine Imprisonment for a minimum period of 6 months. Imprisonment for lesser period is permissible, if the Court records special and adequate reasons for such reduction. (b) If duty involved is less than Rs.1 lakh: Imprisonment upto 3 years or fine or both. Second/subsequent conviction under this Section : Imprisonment upto 7 years with fine. Imprisonment for a minimum period of 6 months. Imprisonment for lesser period is permissible, if Court records special and adequate reasons. Sec. 9AA Offences by Companies The person in charge and responsible for the conduct of the business of the company shall also be liable for the offence. Applicable provisions as in the case of individuals Sec. 11 A Non-payment/Short payment/ Non-levy/ Short levy/ eronoeous refund penalty equivalent to 25%, if duty is paid with interest Sec. 11AA Non payment of duty determined by an Order issued under Section11A(2). Interest @ 15% for the period from the date of such order till the date of payment of such duty Notification No. 18/2002 CE(NT) dated 13-5-2002 Sec. 11AB Delayed payment of duty short paid/levied, not paid/levied Interest @ 13% from the date of the month succeeding the month in which the duty ought to have been paid or from the date of erroneous refund. when duty becomes due on issue of Order under Section 37B, no interest is payable, if duty is paid in full foregoing the right to appeal, within 45 days from the date of issue of Order. Sec. 11AC Non-payment of duty or erroneously refund due to fraud, collusion, wilful misstatement or suppression of facts with intent to evade duty payment. Penalty equal to duty. Penalty may be reduced to 25%, if duty, interest and reduced penalty are paid within 30 days from communication of adjudication order. Section11BB Delay in sanction of refund beyond 3 months time from date of receipt of refund claim Interest @ 6% is payable by the Department Section11DD Interest on amounts collected in excess of duty Interest @ 15% (Notification No. 68/2003 CE(NT) dated 12-9-2003 Section11DDA Protection of revenue interest (Provisional attachment) Provisional attachment valid for six months. Attachment period extendable by Chief Commissioner upto 2 years. Section 22 Vexatious search or seizure by Central Excise officers without reasonable grounds. Fine upto Rs.2000/- Imprisonment upto 2 years or fine or both on any person for giving false information causing arrest or search. Section 23 Failure /refusal to perform duties of his office by any Central Excise officer Imprisonment upto 3 months or fine upto 3 months pay or both. Section 37E Proceedings or prosecutions under Central Excise Act in public interest. Publication of names and particulars of persons. No publication relating to penalty till appeal is filed/ disposed.