Rule 28 - Confiscation and penalty

Confiscation and penalty: excisable goods may be confiscated and responsible persons penalised for specified contraventions.

Where a producer, manufacturer, registered warehouse person, importer issuing an invoice allowing CENVAT credit, or registered dealer contravenes the Central Excise Rules by removing excisable goods in breach, failing to account for excisable goods, manufacturing or storing without required registration, or contravening rules with intent to evade duty, the goods are liable to confiscation and the responsible person is liable to a penalty not exceeding the duty on those goods or a specified minimum, and orders must be issued by the Central Excise Officer following principles of natural justice.