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2011 (8) TMI 872 - HC - Central ExciseRight to appeal with option to avail compounding of offence - Rule 4(3) of the Central Excise (Compounding of Offences) Rules, 2005 - Petitioner submitted that, question runs counter to the language employed in Section 9A(2) of the Act and also travels beyond the rule making power as enshrined under Section 37(2)(id) of the Act. It is his submission that by incorporating such a provision by way of an amendment in the Rules in 2007, the right to appeal of the petitioner under Section 35G of the Act stands frustrated and once a statutory right of appeal is provided in an enactment, the same cannot be defeated by envisaging such conditions, as has been done in the Rule in question. - The compounding amount has not been defined or prescribed in the Act though it is implicit that to compound an offence, payment of the compounding amount has to be made - when there is a compounding for the purpose admitting a tax evasion, the condition stipulated for entertaining the application cannot be regarded as onerous - The manner, while prescribing, can lay down certain conditions precedent, it does not whittle down the purpose of compounding - Petition is dismissed
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