Guidelines for compounding of offences under Customs and Central Excise Acts – regarding

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...., 2005, the date of publication of these rules in the official gazettee. Notification No.114/2005 Customs (N.T.) and No. 37/2005-Central Excise (N.T.) both dated 30.12.2005 have been issued in this regard. 2. As you may be aware, the purpose of compounding of offences against payment of compounding amount is to prevent litigation and encourage early settlement of disputes.  Considering the wide range of offences listed in the relevant Chapter of the Customs Act/ Central Excise Act, Board has decided to classify these offences as (i) technical offences; and (ii) substantive or non-technical offences for the purpose of compounding.  'Technical offences' are those offences that can be compounded more than once and would be accorde....

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....n who is involved in cases of smuggling of goods falling under any of the following categories,- (a) Special Chemicals, Organisms, Materials, Equipments & Technologies (SCOMET), as specified in Appendix-3 to Schedule 2 of ITC (HS); (b) Prohibited items for import or export as specified in the ITC (HS) Classifications of Export and Import items, 2004-09 issued under section 3 of the Foreign   Trade (Development and Regulation) Act, 1992; (c) Any other goods or a document, which is likely to affect friendly relations with any foreign state or is derogatory to national prestige. (iii) Any person who has already exercised the option of compounding of an offence in respect of goods of value exceeding rupees o....

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....taking to comply with the provisions of these rules and submit a copy of such affidavit to the compounding authority. On receipt of such affidavit, the compounding authority shall examine the application in accordance with the above guidelines and pass an appropriate order under sub-rule (3) to rule 4. A copy of such order shall also be forwarded to the Court. After payment of compounding amount as per the above order, the reporting authority shall move an application before the said court informing about the compounding of offence and requesting the court to dispose of the case accordingly. If the court accepts the order of compounding of offence and disposes of the case, then the order of compounding authority becomes final. However, in c....