25. Confiscation and penalty.-

(1) Subject to the provisions of section 11 AC of the Act, if any producer, manufacturer, registered person of a warehouse or an importer who issues an invoice on which CENVAT credit can be taken, or a registered dealer, -

(a) removes any excisable goods in contravention of any of the provisions of these rules or the notifications issued under these rules; or

(b) does not account for any excisable goods produced or manufactured or stored by him; or

(c) engages in the manufacture, production or storage of any excisable goods without having applied for the registration certificate required under section 6 of the Act; or

(d) contravenes any of the provisions of these rules or the notifications issued under these rules with intent to evade payment of duty,-

then, all such goods shall be liable to confiscation and the producer or manufacturer or registered person of the warehouse or an importer who issues an invoice on which CENVAT credit can be taken, or a registered dealer , as the case may be, shall be liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention of the nature referred to in clause (a) or clause (b) or clause (c) or clause (d) has been committed, or five thousand rupees [OLD- two thousand rupees] [OLD- rupees ten thousand], whichever is greater.

(In above sub-rule (1)  & in long line, the words "or an importer who issues an invoice on which CENVAT credit can be taken," - inserted and words "five thousand rupees" - substituted vide NTF. NO. 08/2015-CE (NT), DT. 01/03/2015)

(2) An order under sub-rule (1) shall be issued by the Central Excise Officer, following the principles of natural justice.

(In Rule 25, the words "two thousand rupees" has been substituted vide NTF. NO. 08/2007-CE(N.T.), DT. 01/03/2007)