Deterrent measures where duty is paid wrongly or where cenvat facility is misutilized - 05/2012 - Central Excise - Non Tariff

Cenvat misuse enforcement: withdrawal of facilities and restrictions where deliberate wrongful duty payment or bogus invoices are prima facie found.

Where manufacturers, dealers, or exporters are prima facie found knowingly involved in wrongful non payment or under declaration of excise duty, misuse of CENVAT credit, issuance of invoices without delivery, or use of documents believed not genuine, an officer authorised by the Central Board may withdraw facilities or impose restrictions. Restrictions include withdrawal of monthly duty payment, prohibition on CENVAT utilisation for duty, recordkeeping and inspection requirements, countersigned invoices for repeat offenders, suspension of dealer registration, and withdrawal of self sealing for exporters. A tiered review and hearing procedure precedes Board orders.