TMI BlogGuidelines for compounding of offences under Customs Act, 1962 - regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms Act, 1962 - regarding. *** Sir/ Madam, I am directed to invite your attention to the Board's Circular No. 54/2005-Cus dated 30.12.2005 prescribing the Guidelines for compounding of offences for implementing the provisions of the Customs Act, 1962 and the Customs (Compounding of offences) Rules, 2005 . 2. The High Court of Bombay in their Order dated 25.10.2007 passed in W.P. No. 1884 of 2007 held that there is no power conferred to interfere with the statutory power of the Chief Commissioner of Customs for compounding of offences under Section 137(3) of the Customs Act, 1962 . Hence, the guidelines issued by the Board, vide Circular No. 54/2005-Cus dated 30.12.2005 , classifying offences as 'technical' and 'substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person who has been allowed to compound once in respect of any offence under the Chapter XVI of the Customs Act, 1962 for goods of value exceeding rupees one crore. (e) a person who has been convicted under the Customs Act, 1962 on or after the 30th Day of December, 2005. 4. The Board had also issued a Circular No.20/2008-Customs dated 2.12.2008 highlighting the changes made in the scheme of Customs (Compounding of Offences) Rules, 2005 based on the recommendations of the Committee on Subordinate Legislation (Rajya Sabha). These relate to early disposal of applications for compounding by obtaining a factual report within the stipulated period and dispose of the application within the overall time limit of six months. It was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given by the applicant, it may be ensured that verification of such facts is done by calling for a report or any other facts or information available on record from the reporting authority. (iii) As per Rule 6 of the Customs (Compounding of Offences) Rules, 2005 , any person who has made the application for compounding of offence and has made full and true disclosure of facts relating to the case, is given immunity from prosecution for any offence under the Customs Act, 1962 with respect to the case covered by the compounding of offence. Since the filing of application under compounding rules is the individual option of the person to avoid prosecution, other persons involved in the case/ offence and who have not filed the applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by the applicant. 6. In order to make best of use of the scheme of compounding of offences, it is reiterated that at the time of intimation/ initiating action for launching of prosecution itself, the assessees should be given an offer of compounding. It may, however, be clarified that the application for compounding shall be decided on merits and in exercise of the powers vested with the Chief Commissioner. In respect of cases where the Chief Commissioner is not inclined to accede to the applicant's request for compounding, the same may be rejected duly informing the grounds and after following the principles of natural justice. 7. The above instructions may be taken into consideration by the Compounding Authorities while examinin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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