Central Excise Rules
CENTRAL EXCISE (COMPOUNDING OF OFFENCES) RULES, 2005

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 : -

TABLE

S. No.	Offence	Compounding amount
(1)	(2)	(3)
1.	Offence specified under section 9(1)(a) 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.
2.	Offence specified under section 9(1)(b) of the Act	Up to fifty per cent of the amount of duty evasion, subject to minimum of ten per cent of duty evasion.
3.	Offence specified under section 9( 1)( bb) of the Act	Upto fifty per cent of the amount of duty evasion, subject to minimum of ten per cent of duty evasion
4.	Offence specified under section 9(1) ( bbb ) of the Act	Upto twenty five per cent of the amount of duty evasion, subject to minimum of ten per cent of duty evasion.
5.	Offence specified under section 9( 1)( bbbb ) of the Act	Upto fifty per cent of the amount of CENVAT Credit wrongly taken or utilized, subject to minimum often per cent of said amount
6.	Offence specified under section 9(1)(c) 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.
7.	Offence specified under section 9(1)(d) of the Act	Upto twenty five per of the amount of duty evasion, subject to minimum of ten per cent of duty evasion.

Provided that if a person has, in respect of same goods, committed offences falling under more than one category specified above and where amount of duty evasion or amount of CENVAT Credit wrongly taken or utilized is same for all such offences, the compounding amount, in such cases, shall be the amount determined for the offence for which a higher compounding amount has been prescribed.