Rule 20 — Procedure for compounding of offences

20. Procedure for compounding of offences. - (1) A registered person may, either before or after the institution of prosecution, make an application in accordance with section 23 of the Act to the proper officer for compounding of an offence. (2) On receipt of the application, the proper officer shall call for a report from the concerned officer with reference to the particulars furnished in the application, or any other information, which may be considered relevant for the examination of such application. (3) The proper officer, after taking into account the contents of the said application, may, by order, either allow the application and grant him immunity from prosecution or reject such application within ninety days from the receipt of the application: Provided that the application shall not be rejected unless an opportunity has been given to the applicant to be heard and the grounds of such rejection are mentioned in the order. (4) Where the application has been allowed under sub-rule (3), the proper officer shall pass an order, specifying the compounding amount which shall be determined as per the Tables below, namely:- TABLE A Sl. Offence Compounding amount Compounding amount if Compounding amount if No. if offence is punishable offence is punishable offence is punishable under clause (a) of sub- under clause (b) of sub- under clause (c) of sub- section (1) of section 19 section (1) of section 19 section (1) of section 19 (1) (2) (3) (4) (5) 1 Offence specified Up to seventy-five per Up to sixty per cent. of the under section fifty per cent. of the cent. of the amount of amount of cess evaded or 18(1)(a) of the Act amount of cess evaded or cess evaded or the the amount of refund of [भाग II—खण्ड 3(i)] भारत का रािपत्र : असाधारण 39 2 Offence specified amount of refund of cess cess wrongly taken, the amount of refund of under section wrongly taken, subject to subject to minimum of cess wrongly taken. 18(1)(b) of the Act minimum of fifty per fifty per cent. of such cent. of such amount of amount of cess evaded or 3 Offence specified cess evaded or the the amount of refund of under section amount of cess wrongly taken. 18(1)(c) of the Act abatement/refund of cess 4 Offence specified wrongly taken. under section 18(1)(d) of the Act TABLE B Sl. Offence Compounding Amount No. (1) (2) (3) 1 Offence specified under section 18(1)(f) of the Act 2 Offence specified under section Ten Thousand Rupees or Fifty percent of the cess involved, whichever is higher 18(1)(i) of the Act 3 Offence specified under section 18(2) of the Act (5) Where the offences committed by the person fall under more than one category specified in the Table under sub-rule (4), the compounding amount, in such a case, shall be the amount determined for the offence for which a higher compounding amount has been specified. (6) The application shall not be allowed unless the cess, interest and penalty liable to be paid have been paid for the case for which the application has been made. (7) The applicant shall, within a period of thirty days from the date of the receipt of the order under sub-rule (3) allowing the compounding of offences, pay the compounding amount as ordered by the proper officer and shall furnish the proof of such payment to him. (8) In case the applicant fails to pay the compounding amount within the period specified in sub-rule (7), the order made under sub-rule (3) shall be vitiated and void. (9) An immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the proper officer, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any particulars or had given false evidence, and thereupon such person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and the provisions the Act shall apply as if no such immunity had been granted. CHAPTER IX SEIZURE OF GOODS