Customs Compounding of Offences – Rules Amended – Compounding only if duty, penalty and interest paid
The Government has amended the ‘Customs (Compounding of Offences) Rules, 2005'. Now compounding will be allowed only if the duty, penalty and interest liable to be paid have been paid for the case for which application has been made.
Further, the compounding amount has also been reduced , perhaps to make the scheme more attractive.
But should there be no similar amendment in the Central Excise (Compounding of Offences) Rules, 2005?
Yes, it was done by Notification No. 42 /2007- Cx .( N.T. ), Dated: December 27, 2007.
Then why did it take so long, nearly a year for the changes to be made in Customs? Well, that is how the Government works – the Customs Section would not know what the Excise Section is up to.
Even the present Notification is dated 12 th November 2008 and it actually went missing for a week and was available only yesterday. And strangely the note to the notification dated 12.11.2008, mentions a corrigendum dated 18.11.2008.
Compounding amounts for various offences:
S. No. | Offence | Compounding amount | ||
|---|---|---|---|---|
Prior to 12.11.2008 | From 12.11.2008 | |||
1. | Offence specified under section 132 of the Act | Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. | Fifty thousand rupees for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. | |
False declaration, false documents, etc . | ||||
2. | Offence specified under section 133 of the Act | Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. | Fifty thousand rupees for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. | |
Obstruction of officer of customs | ||||
3. | Offence specified under section 134 of the Act | Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. | Fifty thousand rupees for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. | |
Refusal to be X-rayed | ||||
4. | Offence specified under section 135(1)(a) of the Act | Upto twenty per cent. of market value of the goods or Rupees ten lakhs whichever is higher. | Upto ten per cent. of the amount of market value of the goods, subject to a minimum of one lakh rupees. | |
misdeclaration of value or in any fraudulent evasion or attempt at evasion of any duty chargeable thereon or of any prohibition | ||||
5. | Offence specified under section 135(1)(b) of the Act | Upto twenty per cent. of market value of the goods or Rupees ten lakhs whichever is higher. | Upto five per cent. of the amount of market value of the goods, subject to a minimum of one lakh rupees. | |
acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation | ||||
6. | Offence specified under section 135(1)(c) of the Act | Upto twenty per cent. of market value of the goods or Rupees ten lakhs whichever is higher. | Upto ten per cent. of the amount of market value of the goods, subject to a minimum of one lakh rupees. | |
attempts to export any goods which he knows or has reason to believe are liable to confiscation | ||||
7. | Offence specified under Section 135(1) (d) of the Act | This offence was not mentioned in the pre-amended Rules. | Upto ten per cent. of the amount of market value of the goods, subject to a minimum of one lakh rupees. | |
fraudulently avails of or attempts to avail of drawback or any exemption from duty provided under this Act in connection with export of goods | ||||
8. | Offence specified under section 135A of the Act | Upto twenty per cent. of market value of the goods or Rupees ten lakhs whichever is higher. | Upto five per cent. of the amount of market value of the goods, subject to a minimum of one lakh rupees. | |
preparation to export any goods in contravention of the provisions of this Act | ||||
Also see - 02 01 2006 and - 23.08.2007 for more details on the Scheme.
Notification NO. Dated: November 12, 2008