Confiscation and Penalty for Certain Offences, General Penalty, Composition of Offences on confiscation, property to vest in Central Government.

209. Confiscation and penalty
209A. Penalty for certain offences
210. General penalty
210A. Composition of offences
211. On confiscation, property to vest in Central Government
212. Disposal of goods confiscated
212A. Storage charges in respect of goods confiscated and redeemed
213. Form of appeal to Commissioner (Appeals)
214. Form of application to the Commissioner (Appeals)
215. Production of additional evidence before Commissioner (Appeals)
216. Form of appeal, etc., to the Appellate Tribunal
217. Form of application to the Appellate Tribunal
218. Form of application to the High Court
218A. Form of revision application to the Central Government
218B. Procedure for filing revision application
219. Procedure for filling appeals etc
220. Form and manner of Application
220A. Disclosure of information in the application for settlement of cases
220B. Manner of Provisional Attachment of Property
220C. Fee for Copies of reports

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—
   1. from his personal knowledge; or
   2. on the strength of a certificate given by a person with whose handwriting or signature he is familiar; or
   3. 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
2. The grounds of appeal and the form of verification as contained in Form No. E.A.-l. shall be signed—
   1.  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;
   2. 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;
   3. in the case of a company or local authority, by the principal officer thereof;
   4. in the case of a firm, by any partner thereof, not being a minor;
   5. in the case of any other association, by any member of the association or the principal officer thereof; and
   6. 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

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:—
   1. where the adjudicating authority has refused to admit evidence which ought to have been admitted; or
   2. where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by adjusticating authority; or
   3. 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
   4. 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—
   1. to examine the evidence or document or to cross-examine any witness produced by the appellant, or
   2. 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
   
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
   
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

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
   
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
   
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:—
   1. order referred to in the first proviso to sub-section (1) of section 35B;and
   2. 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

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

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.