Section 16
Penalties
(1) In cases where any person commits the following offence, such a person shall be punished with a fine in a sum equivalent to the claimed amount or imprisonment for a term not exceeding one year or with both punishments for such offence, and the claimed amount shall also be seized: - (a) Conceal, hide or evade the excise duty required to be paid under this Act,
(b) Produce or import excisable goods without obtaining the license,
(c) If any person commits any offence contrary to this Act by preparing false account or forged document,
(d) Production, bottling , sale and distribution of liquor contrary to the Acts and Regulations or the terms and conditions set forth by the Department,
(e) Making fake excise duty sticker, used in production or import of liquor, beer, cigarettes or tobacco products and other excisable goods, and using such fake excise duty sticker to produce or import liquor, beer, cigarette or tobacco products or other excisable goods, producing or transporting or storing.
(2) In case licensee producing or importing liquor, beer, cigarette or tobacco products commits the following offence to conceal, hide or evade excise duty, such a person shall be punished with a fine in a sum equivalent to two hundred percent of the claimed amount or One Lakh Rupees, whichever is higher or with imprisonment for a term not exceeding one year or with both punishments for such offence and the claimed amount shall also be seized:- (a) Conceal, hide or evade the excise duty,
(b) Produce, remove, sell distribute, store or import liquor, cigarette and tobacco products using fake excise duty sticker,
(c) Produce and remove goods in brands for which approval has not been obtained,
(d) If an enterprise producing liquors as rum, gin, brandy, vodka, whiskey produces such liquors in the strength other than 25 U.P. and 30 U.P. strength.
(3) The claimed amount pursuant to Clause (e) of Sub-section (1) and Sub-section (2) shall be fixed by adding the value of the excisable goods determined based on the strength, quantity and shape of goods wherein the excise duty sticker has been used or may be used, and the excise duty charged on such excisable goods. If the goods and services whose claimed amount is to be fixed has already been sold, their claimed amount shall be fixed based on the selling price of such goods and services.
(4) Where any person commits any of the following offences, the Excise Duty Officer may punish such a person with a fine as follows:
(a) In the event of re-determination of the price or determination of additional price pursuant to Sub-section (4) of Section 7, cent percent amount of the amount of excise duty to be added,
(b) In the event of sale or storage of excisable goods or services without obtaining the excise duty license, from Five Thousand Rupees to Fifteen Thousand Rupees,
(c) In the event of breach of the provision of Section 10A., the amount of 0.05 percent of the excise duty leviable per day or One Thousand Rupees for each return, whichever is the higher,
(d) In the event of failure to maintain updated accounts as referred to Sub-section (1) of Section 10B., Ten Thousand Rupees, and Five Thousand Rupees for each instance in the event of not allowing the accounts of transactions to be inspected,
(e) In the event of breach of Sub-section (2) of Section 10B., Five Thousand Rupees,
(f) In the event of breach of Sub-section (3) of Section 10B., Ten Thousand Rupees,
(g) In the event of obstruction in the act of inspection as referred to in Sub-section (3) of Section 10D., Five Thousand Rupees for each instance,
(h) If, upon examination pursuant to Section 10G., the difference of the alcoholic content is more than one percent, cent percent of the amount of revenue leaked,
(i) If the output recovery (pratilabdi) of production of excisable goods or services is prescribed and such prescribed output recovery (pratilabdi) is not met, cent percent of the amount of excise duty to be added,
(j) In the event of breach of Sub-Section (1) of Section 4D., Ten Thousand Rupees for each instance,
(k) If excise duty is not recovered or recovered less during sale of goods and services under Self-Removal System, upon recovering the excise duty leviable, fine of cent percent of the excise duty not recovered or less recovered,
(l) If the excise duty credit is claimed in breach of Sub-section (3) of Section 3A, cent percent of the amount of excise duty claimed as credit,
(m) In the event of breach of the Sub-section (2) of Section 4D, Ten Thousand Rupees for first instance and Twenty Thousand Rupees for every next time,
(n) If the licensee does not disclose, maximum retail price, manufacture date and batch number in alcohol, cigarette and tobacco products, such goods shall be confiscated and fine of amount equivalent to claimed amount or One Lakh Rupees, whichever is higher shall be imposed.
(o) If transparent plastic cover (shrink cap) required to protect the excise duty sticker in bottles of liquor (except beer, wine, cider) is not used, then such goods shall be confiscated and fine of amount equivalent to claimed amount or One Lakh Rupees, whichever is higher shall be imposed.
(p) If alcohol, cigarette and tobacco products are produced, removed or sold and distributed without approval or by copying others’ brand, then such goods shall be confiscated and fine of amount equivalent to claimed amount or One Lakh Rupees, whichever is higher shall be imposed.
(q) ………
(r) If enterprise producing wine does not ferment the product in patent steal tank or wooden container (Vyat), One Lakh Rupees for each instance.
(s) While examining the stock of a licensee producing liquors, cigarettes, tobacco products, molasses, spirit used as raw material for liquor and other substances subject to excise duty, if the stock is found to be more than the goods mentioned in the purchase book or stock book as prescribed in Excise Duty Rules,
2059 (2002), the Excise Duty Officer may, upon adding the income of such goods and valuating such additional goods at the market value, impose a fine of cent percent of such value of the additional goods.
(s1) If it is found that the spirit or ethanol has been used contrary to the approval granted under this Act or Rules framed thereunder, fine equivalent to the highest rate of excise duty that can be levied on the liquor that can be prepared from such spirit or ethanol.
(t) Except those mentioned in this Section, in the event of breach of this Act or the Rules framed under this Act, One Thousand Rupees for each instance.
(5) The utensils used directly or indirectly with the offence, tools machines, equipment and motor vehicle used to manufacture or make a product or service shall also be seized. Provided that, in cases where the person who commits such offence had used such a motor vehicle in such act without permission of the owner of the vehicle, such vehicle shall not be seized, but the owner of the vehicle shall be punished with a fine of Twenty-Five Thousand Rupees and the driver shall be punished with a fine up to Fifteen Thousand Rupees or imprisonment for a term not exceeding Three months or with both punishments, based on the nature of the offence.
(6) Notwithstanding anything contained in Sub-section (4), in cases where a motor vehicle is registered as on hire and used by its owner himself/herself, such vehicle shall be seized.
(7) In addition to the penalties and fine stated in Sub-section (1), Excise Duty Officer may suspend the license issued pursuant to Section 9 for a term not exceeding ninety days.
(8) In cases where anyone attempts or abets to commit the offence referred to in Sub-section (1) and (2), he/she shall be punished with half of the punishment than the main offender.
(9) In addition to the penalties stated in 7Sub-section (2), Excise Duty Officer may suspend the license issued pursuant to Section 9 for a term not exceeding Six months or cancel the license pursuant to Section 10 and write to the concerned authority to cancel the registration of such industry or enterprise.
(b) Produce or import excisable goods without obtaining the license,
(c) If any person commits any offence contrary to this Act by preparing false account or forged document,
(d) Production, bottling , sale and distribution of liquor contrary to the Acts and Regulations or the terms and conditions set forth by the Department,
(e) Making fake excise duty sticker, used in production or import of liquor, beer, cigarettes or tobacco products and other excisable goods, and using such fake excise duty sticker to produce or import liquor, beer, cigarette or tobacco products or other excisable goods, producing or transporting or storing.
(2) In case licensee producing or importing liquor, beer, cigarette or tobacco products commits the following offence to conceal, hide or evade excise duty, such a person shall be punished with a fine in a sum equivalent to two hundred percent of the claimed amount or One Lakh Rupees, whichever is higher or with imprisonment for a term not exceeding one year or with both punishments for such offence and the claimed amount shall also be seized:- (a) Conceal, hide or evade the excise duty,
(b) Produce, remove, sell distribute, store or import liquor, cigarette and tobacco products using fake excise duty sticker,
(c) Produce and remove goods in brands for which approval has not been obtained,
(d) If an enterprise producing liquors as rum, gin, brandy, vodka, whiskey produces such liquors in the strength other than 25 U.P. and 30 U.P. strength.
(3) The claimed amount pursuant to Clause (e) of Sub-section (1) and Sub-section (2) shall be fixed by adding the value of the excisable goods determined based on the strength, quantity and shape of goods wherein the excise duty sticker has been used or may be used, and the excise duty charged on such excisable goods. If the goods and services whose claimed amount is to be fixed has already been sold, their claimed amount shall be fixed based on the selling price of such goods and services.
(4) Where any person commits any of the following offences, the Excise Duty Officer may punish such a person with a fine as follows:
(a) In the event of re-determination of the price or determination of additional price pursuant to Sub-section (4) of Section 7, cent percent amount of the amount of excise duty to be added,
(b) In the event of sale or storage of excisable goods or services without obtaining the excise duty license, from Five Thousand Rupees to Fifteen Thousand Rupees,
(c) In the event of breach of the provision of Section 10A., the amount of 0.05 percent of the excise duty leviable per day or One Thousand Rupees for each return, whichever is the higher,
(d) In the event of failure to maintain updated accounts as referred to Sub-section (1) of Section 10B., Ten Thousand Rupees, and Five Thousand Rupees for each instance in the event of not allowing the accounts of transactions to be inspected,
(e) In the event of breach of Sub-section (2) of Section 10B., Five Thousand Rupees,
(f) In the event of breach of Sub-section (3) of Section 10B., Ten Thousand Rupees,
(g) In the event of obstruction in the act of inspection as referred to in Sub-section (3) of Section 10D., Five Thousand Rupees for each instance,
(h) If, upon examination pursuant to Section 10G., the difference of the alcoholic content is more than one percent, cent percent of the amount of revenue leaked,
(i) If the output recovery (pratilabdi) of production of excisable goods or services is prescribed and such prescribed output recovery (pratilabdi) is not met, cent percent of the amount of excise duty to be added,
(j) In the event of breach of Sub-Section (1) of Section 4D., Ten Thousand Rupees for each instance,
(k) If excise duty is not recovered or recovered less during sale of goods and services under Self-Removal System, upon recovering the excise duty leviable, fine of cent percent of the excise duty not recovered or less recovered,
(l) If the excise duty credit is claimed in breach of Sub-section (3) of Section 3A, cent percent of the amount of excise duty claimed as credit,
(m) In the event of breach of the Sub-section (2) of Section 4D, Ten Thousand Rupees for first instance and Twenty Thousand Rupees for every next time,
(n) If the licensee does not disclose, maximum retail price, manufacture date and batch number in alcohol, cigarette and tobacco products, such goods shall be confiscated and fine of amount equivalent to claimed amount or One Lakh Rupees, whichever is higher shall be imposed.
(o) If transparent plastic cover (shrink cap) required to protect the excise duty sticker in bottles of liquor (except beer, wine, cider) is not used, then such goods shall be confiscated and fine of amount equivalent to claimed amount or One Lakh Rupees, whichever is higher shall be imposed.
(p) If alcohol, cigarette and tobacco products are produced, removed or sold and distributed without approval or by copying others’ brand, then such goods shall be confiscated and fine of amount equivalent to claimed amount or One Lakh Rupees, whichever is higher shall be imposed.
(q) ………
(r) If enterprise producing wine does not ferment the product in patent steal tank or wooden container (Vyat), One Lakh Rupees for each instance.
(s) While examining the stock of a licensee producing liquors, cigarettes, tobacco products, molasses, spirit used as raw material for liquor and other substances subject to excise duty, if the stock is found to be more than the goods mentioned in the purchase book or stock book as prescribed in Excise Duty Rules,
2059 (2002), the Excise Duty Officer may, upon adding the income of such goods and valuating such additional goods at the market value, impose a fine of cent percent of such value of the additional goods.
(s1) If it is found that the spirit or ethanol has been used contrary to the approval granted under this Act or Rules framed thereunder, fine equivalent to the highest rate of excise duty that can be levied on the liquor that can be prepared from such spirit or ethanol.
(t) Except those mentioned in this Section, in the event of breach of this Act or the Rules framed under this Act, One Thousand Rupees for each instance.
(5) The utensils used directly or indirectly with the offence, tools machines, equipment and motor vehicle used to manufacture or make a product or service shall also be seized. Provided that, in cases where the person who commits such offence had used such a motor vehicle in such act without permission of the owner of the vehicle, such vehicle shall not be seized, but the owner of the vehicle shall be punished with a fine of Twenty-Five Thousand Rupees and the driver shall be punished with a fine up to Fifteen Thousand Rupees or imprisonment for a term not exceeding Three months or with both punishments, based on the nature of the offence.
(6) Notwithstanding anything contained in Sub-section (4), in cases where a motor vehicle is registered as on hire and used by its owner himself/herself, such vehicle shall be seized.
(7) In addition to the penalties and fine stated in Sub-section (1), Excise Duty Officer may suspend the license issued pursuant to Section 9 for a term not exceeding ninety days.
(8) In cases where anyone attempts or abets to commit the offence referred to in Sub-section (1) and (2), he/she shall be punished with half of the punishment than the main offender.
(9) In addition to the penalties stated in 7Sub-section (2), Excise Duty Officer may suspend the license issued pursuant to Section 9 for a term not exceeding Six months or cancel the license pursuant to Section 10 and write to the concerned authority to cancel the registration of such industry or enterprise.