Compounding of excise offence bars extra demand for full stock value before release of seized goods.

After compounding of an excise offence under the A.P. Excise Act, 1968 and payment of the prescribed compounding fee, the statutory scheme treated the matter as concluded, with acceptance of compensation operating as an acquittal and barring further proceedings in relation to the same act. The seizure and confiscation provisions did not justify an additional demand for the full value of duty-paid stock as a condition for release where the goods had not been adjudged liable to confiscation. The further monetary demand was therefore unwarranted, and the seized stock was to be released without insisting on that payment.

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Issues: Whether, after compounding of the excise offence and payment of compounding fee, the authorities could insist on payment of the full value of the duty paid stock as a further condition for release of the seized stock.

Analysis: The governing scheme under Sections 47 and 47A of the A.P. Excise Act, 1968 treats compounding fee and compensation as part of the statutory mechanism for disposing of the offence, and the acceptance of compensation is stated to amount to an acquittal, barring further proceedings against the person or property in relation to the same act. The seizure and confiscation provisions do not support an additional demand for the entire value of the duty paid stock once the offence has been compounded and the prescribed amount has been paid. Section 45, dealing with liability to confiscation, could not be used to justify such further monetary burden where the seized goods had not been adjudged liable for confiscation and the statutory consequence of compounding had already followed.

Conclusion: The demand for payment of the full value of the duty paid stock was unwarranted, and the stock was required to be released to the petitioner without insisting on that additional payment.

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