5. Fixation of the compounding amount.-

For the purpose of compounding of offences under the provisions of the Act, the compounding amount shall be as provided in the following Table, namely:-

Table

S.No.

Offence

Compounding amount

(1)

(2)

(3)

1.

Offence specified under section 89 (1)(a) of the Act

Up to fifty per cent. of the amount of service tax evasion, subject to minimum of ten per cent. of amount of tax evaded

2.

Offence specified under section 89 (1)(b) of the Act

Upto fifty per cent. of the amount of CENVAT Credit wrongly taken or utilised, subject to minimum of ten per cent. of said amount.

3.

Offence specified under section 89 (1)(c) of the Act

Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence

4.

Offence specified under section 89 (1)(d) of the Act

Upto twenty five per cent. of the amount of service tax not deposited subject to a minimum of two per cent. for each month for which the amount has not been so deposited.

 

Provided that if a person has committed offences falling under more than one category specified above and where the amount of service tax evasion or amount of CENVAT Credit wrongly taken or utilised is the same for all such offences, the compounding amount, in such cases, shall be the amount as determined for the offence for which a higher compounding amount has been prescribed.