Central Excise (Compounding of Offences) Rules, 2005 Issue Date: 30-December-2005 Last Updated: 06-August-2014 Table Of Content

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Parent: THE CENTRAL EXCISE ACT, 1944 (8b9c1d20fad0a6e59e6a2bcf99a6dea8c3f65936)

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Central Excise (Compounding of Offences) Rules, 2005 Issue Date: 30-December-2005 Last Updated: 06-August-2014 Table Of Content Rule Short title and commencement Rule 2 Defintions Rule 3 Form and manner of application Rule 4 Procedure on receipt of application under rule 3 Rule 5 Fixation of the compounding amount Rule 6 Power of Compounding authority to grant immunity from prosecution Rule 7 Withdrawal of Immunity from prosecution in certain conditions CENTRAL EXCISE (COMPOUNDING OF OFFENCES) RULES, 2005 [MF. (D.R:) Notification No. 37/2005-C.E. (N.T:) , dated 30-12-2005 as amended by Notification No. 42/2007-C.E. (N.T:) , dated 27.12.2007] In exercise of the powers conferred by clause (id) of sub-section (2) of section 37 read with sub-section (2) of section 9A of the Central Excise Act; 1944 (1 of 1944), the Central Government here by makes the following rules, namely = Rule 1. Short title and commencement (i These rules may be called the Central Excise(Compounding of Offences) Rules, 2005. (ii They' shall come into force on the date of their publication in the Official Gazette. Rule 2. Definitions: In these rules, unless the context otherwise requires, (a) Act" means the Central Excise Act; 1944 (1 of 1944); (b) " applicant" means any assessee or any other person; but shall not include officers of Central Excise as appointed by Board or Principal Commissioner or Commissioner; as the case may be of Central Excise under Rule3 of the Central Excise Rules, 2002; (c) "compounding authority" means the Principal Chief Commissioner or Chief Commissioner, as the case may be, having jurisdiction over the place where the offence under the Central Excise Act,1944, have been or alleged to have been committed; (d) "form means the form appended to these rules; (e) "reporting autho

Rule TOC

1 · Short title and commencement

2 · Definitions:

1 · Substituted by Notification No. 23/2014 dated06.08.2014 for the words "Chief Commissioner

3 · Form and manner of application:" 1) An applicant may, either before or after institution of prosecution; make an application under sub-section 2 of section 9A in the form appended to these rules, to the Compounding authority to compound the offence Explanation Where an offence under the Act has been committed at more than one place falling under the jurisdiction of more than one compounding authority, then the [Principal Chief Commissioner or Chief Commissioner; as the case may be] of Central Excise having jurisdiction over such place where the value of goods seized, or the amount of duty evaded or attempted to be evaded is more than the others shall be the competent authority:

1 · Substituted by Notification No. 23/2014 dated06.08.2014 for the words "Chief Commissioner

4 · Procedure on receipt of application under rule 3. (1) On receipt of an application under rule 3, the compounding authority shall call for a report from the reporting authority with reference to the particulars furnished in the application; or any other information; which may be considered relevant for examination of such application: (2) Such report shall be furnished by the reporting authority within a period of one month or within such extended period as may be allowed by the compounding authority, from the date of receipt of communication from the compounding authority: (3) The compounding authority, after taking into account the contents of the said application; may, by order; either allow the application indicating the compounding amount in terms of rule 5 and grant him immunity from prosecution in terms of rule 6 or reject such application: Provided that application shall not be rejected unless an opportunity has been given to the applicant of being heard and the grounds of such rejection are mentioned in such order: Provided further that application shall not be allowed unless the duty, penalty and interest liable to be paid have been paid for the case for which application has been made.

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

6 · Power of Compounding authority to grant immunity from prosecution - The compounding authority, if he is satisfied that any person who has made the application for compounding of offence under these rules has co-operated in the proceedings before him and has made full and true disclosure of facts relating to the case, grant to such person, subject to such conditions as he may think fit to impose, immunity from prosecution for any offence under the Central Excise Act; 1944 with respect to the case covered by the compounding of offence

7 · . Withdrawal of Immunity from prosecution in certain conditions " 1) An immunity granted to a person under rule 6 shall stand withdrawn if such person fails to pay any sum specified in the order of compounding passed by the compounding authority, under sub-rule (3) of rule 4 within the time specified in such order or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of the Central Excise Act; 1944 shall apply as if no such immunity had been granted. (2) An immunity granted to a person under sub-rule (1Jabove may, at any time, be withdrawn by the Compounding authority, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any particulars, material or had given false evidence, and there upon such person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and thereupon the provisions the Central Excise Act;, 1944 shall apply as if no such immunity had been granted.