Avoid jail, pay fine – Compounding of offences
The last working day of the year 2005 saw the government issuing the rules for compounding of offences, which was under cold storage for more than a year. Interestingly this is not a new concept. The Central Excise Rules, 1944 had a provision in Rule 210A under which the Commissioner could accept an amount not exceeding Rs. 2,000/- in lieu of confiscation or punishment for any offence under the Act or Rules. Though this provision was there in the statute for a pretty long time, it was very rarely used and even when used only for minor technical offences. Now the compounding is back with a bang. Inflation and promotions have caught up with the system and now the minimum compounding amount is Rs. 50,000/- instead of the maximum Rs. 2,000/- in the earlier rules and the authority is Chief Commissioner instead of Commissioner.
Notification No. , Dated: December 30, 2005
Notification No. , Dated: December 30, 2005
CIRCULAR NO. , Dated: December 30, 2005
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