https://www.taxtmi.com/caselaws?id=218098 Section 47(2) of the A.P. Excise Act, 1968 confers discretion to compound an excise offence by collecting the compounding fee, the value of seized stock, or both, but that discretion must be exercised reasonably and on rational grounds. Where the seized liquor had already suffered duty, there was no allegation of unlawful diversion or dealings in non-duty-paid liquor, and no reasons were recorded for insisting on payment of the stock value in addition to the compounding fee, the extra monetary condition was treated as harsh and unjustified. The condition requiring payment of the stock value was set aside, and refund of the amount paid was directed. en-us Wed, 02 Nov 2011 00:00:00 +0530 Sat, 03 Nov 2012 14:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218098 Section 47(2) of the A.P. Excise Act, 1968 confers discretion to compound an excise offence by collecting the compounding fee, the value of seized stock, or both, but that discretion must be exercised reasonably and on rational grounds. Where the seized liquor had already suffered duty, there was no allegation of unlawful diversion or dealings in non-duty-paid liquor, and no reasons were recorded for insisting on payment of the stock value in addition to the compounding fee, the extra monetary condition was treated as harsh and unjustified. The condition requiring payment of the stock value was set aside, and refund of the amount paid was directed. Case-Laws Central Excise Wed, 02 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218098