Central Excise Rules - CHAPTER XII PENALTIES AND CONFISCATIONS
January, 13th 2011
CHAPTER XII PENALTIES AND CONFISCATIONS
209. Confiscation and penalty.- (1) Subject to the provisions contained in section 11 AC of the Act and notwithstanding anything contained in any other provision of these rules (save and except rule 57AH and rule 173Q), if any manufacturer, producer, registered person of a warehouse or a registered dealer,
(a) removes any excisable goods in contravention of any of the provisions of these rules; or
(b) does not account for any excisable goods manufactured, produced or stored by him; or
(bb) takes credit of duty in respect of inputs or capital goods used in the manufacture of final products or in respect of capital goods for use in the factory of manufacture of final product, as the case may be, wrongly or without taking reasonable steps to ensure that appropriate duty on the said inputs or capital goods has been paid as indicated in the invoice or any other document approved under these rules evidencing the payment of excise duty or the countervailing duty, as the case may be, accompanying thereof, or takes credit of duty which he knows, or which he has reason to believe, is not permissible under these rules, or does not utilise the inputs or capital goods in the manner provided for in these rules or utilises credit of duty in respect of inputs or capital goods in contravention of any of the provisions of these rules, or does not render proper and true account of the receipt and disposal of the said inputs or capital goods and the credit of duty taken thereon as required under these rules, or contravenes any of the provisions contained in Section AA or AAA of Chapter V of these rules; or
(bbb) enters willfully any wrong or incorrect particulars in the invoice issued for the excisable goods dealt by him with intent to facilitate the buyer to avail of credit of the duty of excise in respect of such goods which is not permissible under these rules; or
(c) engages in the manufacture, production or storage of any excisable goods without having applied for the registration certificate required under section 6 of the Act; or
(d) contravenes any of the provisions of these rules with intent to evade payment of duty,
then all such goods shall be liable to confiscation and the manufacturer, producer, registered person of the warehouse or a registered dealer , as the case may be, shall be liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention of the nature referred to in clause (a) or clause (b) or clause (bb) or clause (bbb) or clause (c) or clause (d) has been committed, or ten thousand rupees, whichever is greater.
Explanation. For the purposes of clause (bb) of sub-rule (1), a person availing of credit of duty on inputs received by him shall be deemed to have taken "reasonable steps" if he satisfies himself about the identity and address of the manufacturer or supplier, as the case may be, issuing the invoice or any other document approved under these rules evidencing the payment of excise duty or the countervailing duty; as the case may be, either
(a) from his personal knowledge; or
(b) on the strength of a certificate given by a person with whose handwriting or signature he is familiar; or
(c) on the strength of a certificate issued to the manufacturer or the supplier, as the case may be, by the Superintendent of Central Excise within whose jurisdiction such manufacturer has his factory or the supplier has his place of business:
Provided that where the identity and address of the manufacturer or the supplier is satisfied on the strength of a certificate, the person availing of credit of duty shall retain such certificate for production before the proper officer on demand.
209A. Penalty for certain offences.- Any person who acquires possession of, or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confiscation under the Act or these rules, shall be liable to a penalty not exceeding the duty on such goods or ten thousand rupees, whichever is greater.
210. General penalty.- A breach of these Rules shall, where no other penalty is provided herein or in the Act , be punishable with a penalty which may extend to five thousand rupees and with confiscation of the goods in respect of which the offence is committed.
210A. Composition of offences.- The Commissioner may accept from any person whose property is liable to confiscation under the Act or who is reasonably suspected of having committed an offence under the Act or under the Rules a sum of money not exceeding two thousand rupees in lieu of confiscation of goods or punishment for breach of any provision of the Act or of the Rules.
211. On confiscation, property to vest in Central Government.- (1) When. anything is confiscated under these rules, such things shall thereupon vest in' Central Government .
(2) The officer adjudging confiscation shall take and hold possession of the things confiscated, and every Officer of Police, on the requisition of such officer, shall assist him in taking and holding such possession.
212. Disposal of goods confiscated.- Articles of which confiscation has been adjudged and in respect of which the option of paying a fine in lieu of confiscation has not been exercised, shall be sold, destroyed or otherwise disposed of in such manner as the Commissioner may direct.
212A. Storage charges in respect of goods confiscated and redeemed.- If the owner of the articles, confiscation of which has been adjudged, exercises his option to pay fine in lieu of confiscation, he may be required by the Commissioner to pay such storage charges as may be deemed proper by him.