Compounding amount rules set percentage-based and fixed penalties for different classes of compounding offences under the Act. Fixation of the compounding amount prescribes specific compounding formulas: up to fifty percent of service tax evasion with a minimum of ten percent; up to fifty percent of wrongly taken or utilised CENVAT credit with a minimum of ten percent; a fixed monetary penalty for the third category with escalation for repeat offences; and up to twenty-five percent of undisposed service tax with a minimum monthly percentage for each month of non-deposit. If multiple category offences share the same monetary base, the higher prescribed compounding amount applies.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Compounding amount rules set percentage-based and fixed penalties for different classes of compounding offences under the Act.
Fixation of the compounding amount prescribes specific compounding formulas: up to fifty percent of service tax evasion with a minimum of ten percent; up to fifty percent of wrongly taken or utilised CENVAT credit with a minimum of ten percent; a fixed monetary penalty for the third category with escalation for repeat offences; and up to twenty-five percent of undisposed service tax with a minimum monthly percentage for each month of non-deposit. If multiple category offences share the same monetary base, the higher prescribed compounding amount applies.
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