Adjudication before issuance of sun in terms of rule 6(3AA) of ccrm2004

[Alok Chaudhary]

Whether the commissioner (Audit) can adjudicate a case before issuing son in terms of rule 6(3AA) of the cenvat credit rules 2004?

[Himansu Sekhar]

Please elaborate

[Ganeshan Kalyani]

A benefit of opportunity of being heard shall be given before adjudication.

[KASTURI SETHI]

Here is not a question of adjudication. Question of adjudication arises only after issuance of SCN. Powers of Issuance of SCN and adjudication have been delegated to different Central Excise Officers on the basis of monetary limits. So depending upon the amount of duty involved, Supdt., Assistant Commissioner, Deputy Commissioner, Joint Commissioner, Add. Commissioner, Commissioner are competent to issue SCN and adjudicate the case. So in the situation explained by you, the Central Excise Officer who is competent to adjudicate the case/issue SCN can allow you to follow the procedure laid down in Rule 6 (3A) of Cenvat Credit Rules, 2004. Hence here is the permission required to follow Rule 6 (3A), if not followed earlier. You have option/discretion in Rule 6 (3 AA) for adopting the procedure in Rule 6 (3A) of Cenvat Credit Rules, 2004.

[YAGAY and SUN]

Pre consultation provisions were also there in Excise/Service Tax regime.

[DR.MARIAPPAN GOVINDARAJAN]

Commissioner (Audit) is having no power to adjudicate a case.

AI Summary

Adjudication power limited; audit commissioner lacks authority before issuance of a show cause notice under cenvat procedure.
Adjudication arises only after issuance of a show cause notice and requires an opportunity of being heard; powers to issue notices and adjudicate are delegated by monetary competence, so the officer competent to adjudicate must permit adoption of the Rule 6(3A) procedure under the discretion afforded by Rule 6(3AA); Commissioner (Audit) lacks adjudicatory authority in this context.