Penalty under rules 25 and 27 of CE Rules 2002

[IMMANUEL NEIHSIAL]

Penalty under rule 25 of central excise rules 2002 has been imposed @15% of the Demand. Now i refrain from imposing penalty under rule 27 of the CE rule 2002. I want to know whether my decision is right or wrong. Can we impose penalties by using both rules 25 and 27 of CE rules 2002 ?

Advice is highly sought on the matter.

Thank you.

[KASTURI SETHI]

Your decision is right. Reply to second query is 'NO'.

[KASTURI SETHI]

Dear Sir,

Rule 25 is subject Section 11 AC . Penalty should not exceed the amount of duty evaded. What is the basis of imposition of penalty of 15% of duty demanded ? Will you please clarify ?

[IMMANUEL NEIHSIAL]

I impose penalty (15%) as the assessee fulfils rule 11AC (d).

Thank you.

[IMMANUEL NEIHSIAL]

The assessee has fulfilled section 11AC(1)(d) of CE Act 1944.

Thank you

[DR.MARIAPPAN GOVINDARAJAN]

Whether the queries is the department officer?

AI Summary

Discussion on 15% Penalty Under Rule 25 of Central Excise Rules 2002 and Section 11AC(1)(d) Compliance A discussion on a forum addresses the imposition of penalties under rules 25 and 27 of the Central Excise Rules 2002. A participant queries whether imposing a 15% penalty under rule 25 is correct and if penalties can be imposed under both rules simultaneously. A respondent confirms the decision is correct and clarifies that penalties should not exceed the amount of duty evaded, questioning the basis for the 15% penalty. The original poster explains the penalty was imposed because the assessee fulfilled section 11AC(1)(d) of the Central Excise Act 1944. Another participant questions if the query is from a department officer.