Deterrent measures where duty is paid wrongly or where cenvat facility is misutilized - 032/2006 - Central Excise - Non Tariff

Withdrawal of CENVAT facilities and other restrictions may follow prima facie findings of willful misuse or fraudulent excise documentation.

Where a manufacturer, dealer or exporter is prima facie found to be knowingly involved in wrongful duty practices or misuse of CENVAT, an authorised officer may direct withdrawal of specified facilities or impose restrictions. Triggering conduct includes removal without invoice or duty, under declaration of value with unaccounted receipts, taking CENVAT credit without receipt of goods or on documents believed not genuine, issuing excise invoices without delivery, and claiming refunds on suspect documents. Restrictions include withdrawal of monthly payment facility, barring utilisation of CENVAT credit for duty, record and verification obligations, and, for repeat offences, consignment invoices countersigned by inspecting officers.