Prosecution u/s 9 , Central Excise

[L R Sharma]

Dear All,

Can you please send some light on the following.

1. If a prosecution is initiated in JMIC court under section 9 of Central Excise Act,1944., is there any possibility of compounding by the court? Are there any citations or provisions in the current 2006 amendments? Please send the references.

2. The company in question is closed and did not contest the order of CEGAT which confirmed a huge duty and a condition of prepayment of that amount which was not possible for the party to meet for want of paucity of funds. Party and also the promoters could not even approach the HC for relief as there wasno money left and pre-deposit was not possible.

3. Is it possible to get the case compounded by CE authorities as the decision is of year 2000 of CEGAT on confirmation of duty.

Best Regards,

L R Sharma

Advocate, New Delhi

Posts / Replies

[Radha Arun]

Compounding can be done by the central excise authorities. Pl see Central Excise (Compounding of Offences) Rules 2005. Application for compounding can be made even after commencement of prosecution proceedings. The rules do not specify any period of limitation.