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.
Chapter X1I-A
Appeals to Commissioner (Appeals)
213. Form of appeal to
Commissioner (Appeals).-
(1) An appeal under sub-section
(1) of section 35 to the Commissioner (Appeals) shall be made in Form No. E.A.-l.
Form
E.A.1(9KB)
(2) The grounds of appeal
and the form of verification as contained in Form No. E.A.-l. shall be
signed-
(a) in the case
of an individual, by the individual himself or where the individual is
absent from India, by the individual concerned or by some person duly authorised
by him in this behalf; and where the individual is a minor or is mentally
incapacitated from attending to his affairs, by his guardian or by any
other person competent to act on his behalf;
(b) in the case of a Hindu
undivided family, by the Karta and, where the Karta is absent
from India or is mentally incapacitated from attending to his affairs,
by any other adult member of such family;
(c) in the case of a company
or local authority, by the principal officer thereof;
(d) in the case of a firm,
by any partner thereof, not being a minor;
(e) in the case of any other
association, by any member of the association or the principal officer
thereof; and
(f) in the case of any other
person, by that person or some person competent to act on his behalf.
(3) The form of appeal in Form
No. E.A.-l shall be filed in duplicate and shall be accompanied by a copy
of the decision or order appealed against.
214. Form of application
to the Commissioner (Appeals).- (1) An application under sub-section
(4) of section 35E to the Commissioner (Appeals) shall be made in Form
No. E.A.-2.
(2) The form of application
in Form No. E.A.-2 shall be filed in duplicate and shall be accompanied
by two copies of the decision or order passed by the adjudicating authority
(one of which at least shall be a certified copy) and a copy of the order
passed by the Commissioner of Central Excise directing such authority to
apply to the Commissioner (Appeals).
Form
E.A.2(9KB)
215. Production of additional
evidence before Commissioner (Appeals).- (1) The appellant shall not
be entitled to produce before the Commissioner (Appeals) any evidence,
whether oral or documentary, other than the evidence produced by him during
the course of the proceedings before the adjudicating authority except
in the following circumstances, namely:-
(a) where the adjudicating
authority has refused to admit evidence which ought to have been admitted;
or
(b) where the appellant was
prevented by sufficient cause from producing the evidence which he was
called upon to produce by adjusticating authority; or
(c) where the appellant was
prevented by sufficient cause from producing before the adjusticating authority
any evidence which is relevant to any ground of appeal; or
(d) where the adjudicating
authority has made the order appealed against without giving sufficient
opportunity to the appellant to adduce evidence relevant to any ground
of appeal.
(2) No evidence shall be admitted
under sub-rule (1) unless the Commissioner (Appeals) records in writing
the reasons for its admission.
(3) The Commissioner (Appeals)
shall not take any evidence produced under sub-rule (1) unless the adjudicating
authority or an officer authorised in this behalf by the said authority
has been allowed a reasonable opportunity-
(a) to examine the
evidence or document or to cross-examine any witness produced by the appellant,
or
(b) to produce any evidence
or any witness in rebuttal of the evidence produced by the appellant under
sub-rule (1).
(4) Nothing contained in this
rule shall affect the power of the Commissioner (Appeals) to direct the
production of any document, or the examination of any witness, to enable
him to dispose of the appeal.
Chapter XII-B
Appeals to Appellate Tribunal
216. Form of appeal, etc.,
to the Appellate Tribunal.- (1) An appeal under sub-section (1) of
section 35B to the Appellate Tribunal shall be made in Form No. E.A.-3.
Form
E.A.3(11KB)
(2) A memorandum of cross-objections
to the Appellate Tribunal under sub-section (4) of section 35B shall be
made in Form No. E.A.-4.
Form
E.A.4(10KB)
(3) Where an appeal under
sub-section (1) of section 35B or a memorandum of cross-objections under
sub-section (4) of that section is made by any person other than the Commissioner
of Central Excise, the grounds of appeal, the grounds of cross-objections
and the forms of verification as contained in Form Nos. E.A-3 and E.A-4,
as the case may be, respectively shall be signed by the person specified
in sub-rule (2) of rule 213.
(4) The form of appeal in
Form No. E.A.-3 and the form of memorandum of cross-objections in Form
No. E.A.-4 shall be filed in quadruplicate and shall be accompanied by
an equal number of copies of the order appealed against (one of which at
least shall be a certified copy).
217. Form of application
to the Appellate Tribunal.- (1) An application under sub-section (1)
of section 35E to the Appellate Tribunal shall be made in Form No. E.A.-5.
(2) The form of application
in Form No. E.A.-5 shall be filed in quadruplicate and shall be accompanied
by an equal number of copies of the decision or order passed by the Commissioner
of Central Excise (one of which at least shall be a certified copy) and
a copy of the order passed by the Board directing such Commissioner to
apply to the Appellate Tribunal.
Form
E.A.5(10KB)
218. Form of application
to the High Court.- (1) An application under sub-section (1) of section
35H requiring the High Court to direct the Appellate Tribunal to the High
Court any question of law shall be made in Form No. E.A.-6 and such application
shall be filed in quadruplicate.
Form
E.A.6(10KB)
(2) A memorandum of cross-objections
under sub-section (3) of section 35H to the High Court shall be made in
Form No. E.A.-7 and such memorandum shall be filed in quadruplicate.
Form
E.A.7(9KB)
(3) Where an application
under sub-section (1) of section 35H or a memorandum of cross-objections
under sub-section (3) of that section is made by any person other than
the Commissioner of Central Excise, the application, the memorandum or
form of verification, as the case may be, contained in From NO. E.A.-6
or Form No. E.A.-7 shall be signed by the person specified in sub-rule
(2) of Rule 213.
Chapter XII-BB
Revision by Central Government
218A. Form of revision
application to the Central Government.- (1)A revision application under
sub-section (3) of section 35EE to the Central Government shall be in Form
No. E.A.-8.
(2) The grounds of revision
application and the form of verification, as contained in Form E.A.-8,
shall be signed by the person specified in sub-rule (2) of rule 213.
(3) Where the revision application
is signed by the authorised representative of the applicant, the document
authorising the representative to sign and appear on behalf of the applicant
shall be appended to such revision application.
(4) The form of revision
application in Form No. E.A.-8 shall be filed in duplicate and shall be
accompanied by an equal number of copies of the following documents, namely:-
(i) order referred
to in the first proviso to sub-section (1) of section 35B;and
(ii) decision or order passed
by the Central Excise Officer, which was the subject matter of the order
referred to in clause (i) of this sub-rule.
Form E.A.8(11KB)
218B. Procedure for filing
revision application.- (1) The revision application in Form E.A.-8
shall be presented in person to the Under Secretary, Revision Application
Unit, Government of India, Ministry of Finance, Department of Revenue,
4th Floor, Jeevan Deep Building, Sansad Marg, New Delhi-110 001, or sent
by registered post to such officer.
(2) The revision application
sent by registered post under sub-rule (1) shall be deemed to have been
submitted to the said Under Secretary on the date on which it is received
in the office of such officer.
Chapter XII-C
Other Matters Relating to Appleals
219. Procedure for filling
appeals etc.:- (1) An appeal in Form No.
E. A.-3 or a memorandum of cross-objections in Form No, E.A.-4 or Form No. E.A.-7
or an application in Form No. E.A.-5 or Form No. E.A.-6 shall be presented in
person to the Registrar or an officer authorized in his behalf by the Registrar,
or sent by registered post addressed to the Registrar or such officer.
(2) An appeal or a memorandum of
cross-objections or an application sent by post under sub-rule (1) shall be
deemed to have been presented to the Registrar or to the officer authorized by
the Registrar on the date on which it is received in the officer of the
Registrar, or, as the case may be, in the office of such officer.
Chapter
XIII
Other Matters Relating
to Appeals
220. Form and manner of
Application.- (1) An application under sub-section (1) of section 32E
of the Act, to the Customs and Central Excise Settlement Commission shall
be made in Form SC (E)-1 and shall be accompanied by a fee of one
thousand rupees.
(2) The application referred
to in sub-rule (1), the verification contained therein and all relevant
documents accompanying such application shall be filled in quintuplicate
and be signed by the person specified in sub-rule (2) of Rule 213.
Form
SC(E)1(11KB)
220A. Disclosure of information
in the application for settlement of cases.- (1) The Settlement Commission
may, while calling for a report from the Commissioner of Central Excise
under sub-section (1) of section 32F of the Act, forward a copy of the
application referred to in sub-rule (1) of Rule 220 (other than the annexure
and the statement and other documents accompanying such annexure).
(2) Where an order under
sub-section (1) of section 32F of the Act, has been made to proceed with
the application by the Settlement Commission, the information contained
in the Annexure to the application in Form SC(E)-1 and the statements and
other documents accompanying such annexure shall be sent to the Commissioner
of Central Excise along with a copy of the said order.
220B. Manner of Provisional
Attachment of Property.- (1) Where the Settlement Commission, orders
attachment under sub-section (1) of section 32G of the Act, it shall send
a copy of such order to the Commissioner of Central Excise having jurisdiction
over the place in which the applicant owns any movable or immovable property
or resides or carries on his business or has his bank account.
(2) On receipt of the order
referred to in sub-rule (1). the Commissioner may authorise any officer
subordinate to him and not below the rank of an Assistant
Commissioner of Central Excise to take steps to attach such property of the applicant.
(3) The officer authorised
under sub-rule (2) shall prepare an inventory of the property attached
and specify in it, in the case of the immovable property the description
of such property sufficient to identify it and in case of the movable property
the place where such property is lodged or kept and shall hand over a copy
of the same to the applicant or to the person from charge the property
is attached.
(4) The officer authorised
under sub-rule (2) shall send a copy of the inventory so prepared each
to the Commissioner of Central Excise and the Settlement Commission.
220C. Fee for Copies
of reports.-Any person who, under section 32J of the Act, makes
an application for obtaining copies of reports made by any Central Excise
Officer, shall pay a fee of five rupees per page of each report or part
thereof.
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