TaxTMI 
TaxTMI 
Draft circular on arrear recovery manual for Central Excise, Customs and Service Tax
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....September, 2010 Click here to view the full INDEX ============= Document 1 INDEX CUSTOMS 1. Legal provisions for recovery of arrears of Customs Sections 28 and 142 of Customs Act, 1962 1-2 2. Customs-(Attachment Of Property Of Defaulters for Recovery of Govt Dues Rules), 1995- (Not. No. 31/95- Cus.(N.T.) dated 26.5.1995 as amended by Notification No.67/97 Cus.(N.T) dated 11-12-1997) 3-12 3. Procedure of demand /recovery of dues of Customs. 13-14 4. Delegation of powers to Customs Officers under Sec. 142 of Customs Act, 1962. -Circular No. 54/95-Cus. dated 30.5.95. 15 5. Recovery of arrears of revenue under amended Section 142(1) of Customs Act, 1962 read with Customs (Attachment of Property of Defaulters for Recovery of Govt. dues) Rules, 1995- Circular No.56/96-Cus, dated 14.11.96. 16-44 6. Recovery of Customs arrears on confirmation of demand-application of Excise -Circular No. 788/21/2004-CX -Circular No. 5/2007-Cus. dated 10.1.2007. 45 CENTRAL EXCISE 7. Legal provisions for recovery of arrears of Central Excise 46 Sections 11, 12 of Central Excise Act, 1944 and Sec 142 of Custom....
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....ommissioner (TAR) Dated April 23, 2008. 106-107 22 22. Reward to informers for recovery from tax defaulters-Boards letter F.No.13011/3/2004-Cus (AS) 12.08.2005 23. Commissioner Of Customs(Import) Jawaharlal Nehru Customs House, NHAVA SHEVA reg. recovery of Govt. dues. Standing Order 49/2008. 24. 108 109-112 Commissioner Of Customs Jodhpur- Procedure for streamlining the functioning 113-114 of Recovery Cell. Office Order dt.13.03.08. 25. Chief Commissioner (TAR) letter dated 14.01.2010 regarding realization of arrears during 2009-10 115-116 Page 4 of 117 INTRODUCTION This Handbook is aimed at providing handy information to the officers of Customs, Central Excise & Service Tax regarding various provisions for recovery of arrears of revenue of Customs, Central Excise & Service Tax. The handbook is compilation of procedures, legal provisions, Notifications and CBEC circulars for recovery of arrears of revenue. CBEC has prescribed detailed procedure and formalities required to be followed, drafts of notice to be issued etc. for recovery of arrears of Customs vide Circulars 54/95 Cus dt. 30.5.95 and 56/96 Cu....
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....ed, or interest is not charged, the date on which the proper officer makes an order for the clearance of the goods; (b) in a case where duty is provisionally assessed under section 18, the date of adjustment of duty after the final assessment thereof; (c) in a case where duty or interest has been erroneously refunded, the date of refund; (d) in any other case, the date of payment of duty or interest. Page 6 of 117 SECTION 142 RECOVERY OF SUMS DUE TO GOVERNMENT. - (1) Where any sum payable by any person under this Act is not paid, - (a) the proper officer may deduct or may require any other officer of customs to deduct the amount so payable from any money owing to such person which may be under the control of the proper officer or such other officer of customs: or (b) the Assistant Commissioner of Customs may recover or may require any other officer of customs to recover the amount so payable by detaining and selling any goods belonging to such person which are under the control of the Assistant Commissioner of Customs or such other officer of customs; or (c) if the amount cannot be recovered from such person in the manner provided ....
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....he Customs Act, 1962 (52 of 1962); 'Government dues' means any duty or drawback to be recovered from any person or any interest or penalty payable by any person under the Act and has not been paid. “Certificate' means the certificate required to be issued by an [Assistant Commissioner of Customs or Deputy Commissioner of Customs] under clause (c) of sub-section (1) of section 142 of the Act. “Commissioner (iv)' means any person appointed as Commissioner of Customs or Commissioner of Central Excise under the Act. 'Proper Officer' means an officer subordinate to the Commissioner and not below the rank of Assistant Commissioner of Customs or Assistant Commissioner of Customs and Central Excise, who is authorised by the Commissioner for the purpose of attachment and sale of defaulter's property and for realising the amount mentioned in the certificate.] 'Defaulter' means any person from whom government dues are recoverable under the Act. vii. Other words or terms used in these rules shall have the same meaning assigned to them under the Act. Page 8 of 117 CHAPTER II PROCEDURE FOR ATTACHMENT OF PROPERTY 3. Issue ....
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....ge, charge, lease or otherwise deal with any property belonging to him except with the written permission of the Proper Officer. Page 9 of 117 (ii) Where an attachment has been made under these rules, any private transfer or delivery of the property attached or of any debt, dividend or other moneys contrary to such attachment, shall be void as against all claims enforceable under the attachment. 10. Share in property Where the property to be attached consists of the share or interest of the defaulter in property belonging to him and another as co-owners, the attachment shall be made by a notice to the defaulter prohibiting him from transferring the share or interest or charging it in any way. 11. Attachment of property in custody of court or public officer. Where the property to be attached is in the custody of any court or Public Officer, the attachment shall be made by a notice to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held subject to the further orders of the Proper Officer by whom the notice is issued. Provided that, where such property is in the custody ....
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.... Proper Officer shall cause a proclamation of the intended sale to be made in the language of the district. 18. Contents of proclamation. - A proclamation of sale of immovable property shall be drawn up after notice to the defaulter, and shall state the time and place of sale, and shall specify, as fairly and accurately as possible - (a) the property to be sold; (b) the revenue, if any, assessed upon the property or any part thereof; (c) the amount for the recovery of which sale is ordered; (d) the reserve price, if any, below which the property may not be sold; and (e) any other thing which the Proper Officer considers it material for a purchaser to know in order to judge the nature and value of the property. 19. Mode of making proclamation. - (i) Every proclamation for the sale of immovable property shall be made at some place on or near such property by beat of drum or other customary mode, and a copy of the proclamation shall be affixed on a conspicuous part of the property and also upon a conspicuous part of the office of the Proper Officer. (ii) Where the Proper Officer so directs, such proclamation shall also be published in a ....
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....egularity in the conduction of sale of any property shall vitiate the sale but any person sustaining substantial injury by reason of such irregularity at the hand of any other person may institute a suit in a Civil Court against him for compensation, or if (such other person is the purchaser), for the recovery of specific property and for compensation in default of such recovery. 25. Prohibition against bidding or purchase by officer. - No officer or other person having any duty to perform in connection with any sale under these rules, either directly or indirectly, shall bid for, acquire or attempt to acquire any interest in the property sold. 26. Prohibition against sale on holidays. - No sale under these rules shall take place on a Sunday or other general holiday recognised by the State Government or on any day which has been notified by the State Government a local holiday for the area in which the sale is to take place. Page 12 of 117 CHAPTER IV MISCELLANEOUS 27. Disposal of the sale proceeds. - The sale proceeds of the property of the defaulter shall be utilised in the following manner, namely :- (a) (b) (c) (d) ....
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....Customs Act as otherwise the demand shall become time barred and legally not recoverable. In the case of IAD or CRA objections demands are issued immediately on receipt of the objection wherever it appears that there may be a short levy of duty as indicated in the objection. 4. Demands issued for short levy of duty as a result of audit objection, arising out of assessment etc. are to be finalised within 6 months from the date of issue of the demands and cases which could not be finalised should be reviewed for examining the reasons for delay and adopting suitable remedial measures. 5. Upon receipt of the reply from the Noticee the matter is examined in detail and the Noticee is offered an opportunity of Personal Hearing to explain his case before the adjudicating authority. After the Personal Hearing the adjudicating authority shall examine the material placed before him and shall come to the conclusion after taking into consideration the provisions of Law concerning the issue Generally, the issues involved are misdeclaration of the description of the goods resulting in wrong classification and levy of lesser duty, misdeclaration of valu....
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....e customs Act, 1962, in addition to the existing modes of recovery of govt. dues mentioned therein, a provision has been made to empower custom officers to attach and sell the moveable and / or immovable property of a defaulter as per the rules to be framed in this behalf by the Central Government. These rules have since been notified vide Notification No. 31/95-Cus (NT) dated 26.05.95. 2. In this connection, it may be noted the provision of recovery through district authorities has been retained under section 142 (1)(c)(i), while empowering the proper officer to take recourse to recovery through custom officers. However, simultaneous action through district authorities and through custom officers for recovery of govt. dues should not be taken. The proper officer should take recourse to action under clause (c) of section 142(1) only when the amount in question cannot be recovered under clauses (a) or (b) of section 142 (1). 3. For action under clause (c) or section 142(1) or the Custom Act, 1962, the following guidelines may be followed:- 4. a) b) c) Where the amount recoverable does not exceed rupees one lakh, certificate ac....
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.... regarding implementation of certificate action etc. remain unchanged. 2. It would be noted that recovery through District Collector has been retained under sub- clause (i) of Section 142(1) of the Act while empowering the Proper Officer to recover dues through Customs officers. However, the Board has already issued appropriate directions vide its letter F.No. 495/15/94-CUS.VI dated 30/5/95 to the effect that simultaneous action for recovery of Government dues should not be taken through district authorities and through Customs Officers. It has further been laid down in the aforesaid communication that even action under clause (c) of Section 142(1) of the Act should be taken only when Government dues have not been recovered under Clause (a) or (b) of the aforesaid Section 142(1) of the Act. 3. You are further aware that the Board has already laid down guidelines to initiate recovery action directly through the concerned Commissioners of Customs/ Central Excise under Sub-clause (ii) of Clause (C) of Section 142(1) of the Act only in cases where the recoverable amount exceeds Rs. one lakh or where the District Collector to whom a Certifica....
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....oms House/ Central Excise Headquarters for implementing the provisions of these rules. 9. The Commissioner may issue suitable Standing Order on the subject endorsing a copy to the Board and the Directorate General of Inspection, Customs & Central Excise, New Delhi. With the issuance of these instructions it is expected that speedy action would be initiated for the recovery of pending Government dues under the provisions of the Customs Act, 1962. This procedure should be reviewed after one year. The Commissioners are requested to bring the difficulties faced to the Board's notice within 6 months. Page 18 of 117 ATTACHMENT ANNEXURE'A' 1. There is in Law a distinction between movable & immovable property. The mode and procedure of attachment of the two categories of properties differ in significant respects. Hence, the standard format for the two types of property which are being prescribed as distinct from each other. The standard format which should be used for ordering the attachment for the movable and immovable property is given respectively in Appendix IIIA & IIIB. A copy of the order of attachment is to be served on the default....
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.... of shares, authorized agencies like SEBI, Stock Exchanges could be consulted. 7. VIIA. 8. The order of attachment of negotiable instrument shall be in the form Appendix In the case of shares held by the defaulter in a company, the order in Appendix VIIB shall be issued both to the defaulter and the principal officer of the company prohibiting them from making any transfer of the shares. A copy of the prohibitory order should also be affixed on the notice board of the authorized officer. Page 20 of 117 ANNEXURE 'B' PROCLAIMATION AND SALE 1. When the authorized officer acting under Rule 15 has obtained the Commissioner's order to the effect that the immovable property belonging to the defaulter should be sold he has to give proclamation of such intended sale. 2. The proclamation should be in the language of the district in which the particular property is situated and one proclamation should be issued for each defaulter. It is not necessary to give notice to the defaulter before the sale proclamation is settled. Once a notice is issued, there is not necessity of issuing a fresh notice if subsequently a sale is to be adjo....
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...., to show cause why sale should not be set aside shall be in the form of Appendix IX. 8. When the sale of immovable property becomes absolute, the authorized officer should grant a certificate in which are certified the details of the property sold, the name of the person declared as purchaser and the date on which the sale had become absolute. The certificate as given in Annexure XI is to be granted to the purchaser. Where a purchaser is dead, the certificate may be granted to his legal representative. 9. It is to be noted that departmental officers having any duty to perform in connection with any sale under the Rules either directly or indirectly are prohibited from bidding for, acquiring or attempting to acquire any interest in the property sold through public auction. Needless to say that similar instructions also exist in respect of the sale of confiscated goods or goods sold through public auction in terms of Section 48 of the Act. 10. The rules specifically prohibit conducting any sale through public auction on a Sunday or other general holidays recognized by the State Government or on any day which has been identified by the ....
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....s to whom such payment is due. The balance, if any, left over after making the payment(s) referred to at (a), (b) and (c) above shall be paid to be defaulter. Page 23 of 117 APPENDIX I FORM OF CERTIFICATE UNDER SECTION 142 (1) (c) (ii) OF THE CUSTOMS ACT 1962 From The Assistant Commissioner of Customs, Custom House, To The Commissioner of Customs & Central Excise, ........ Under the Sub: Realization of Government Dues recoverable from provisions of Sec 142 (1) (c) (ii) of the Customs Act, 1962 (Act L II of 1962). Rs. Pursuant to Sec 142(1)(c)(ii) of the Customs Act, 1962 (Act LII of 1962) I, Assistant Commissioner of Customs do hereby certify that a sum of has been demanded from and is payable by by way of duty/penalty/drawback/interest under the said Act and has not been paid and cannot be recovered from the said in the manner provided in Sec. 142(1) (a) or (b) or (c) (i). The said Owns property/resides/carries on business, in your jurisdiction particulars of which are given hereunder:- I am, therefore, to request you to kindly take early steps to realize the amount in accordance with the pro....
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....ery of Customs Dues) Rules 1995 which is reproduced below:- 9(i) where a notice has been served on a defaulter under rule 2, the defaulter or his representative interest shall not be competent to mortgage, charge, lease, or otherwise deal with any property belonging to him except with the permission of the proper officer, not shall any civil court issue an process against such property in execution of a decree for the payment of money. (ii) where an attachment has been made under these Rules, any private transfer or delivery of the property attached or of any interest therein and any payment to the defaulter of any debt, dividend or other monies contrary to such attachment, shall be void, as against all claims enforceable under the attachment". Page 26 of 117 APPENDIX II A NOTICE OF ATTACHMENT WHERE THE PROPERTY CONSISTS OF A SHARE OR INTEREST IN MOVABLE PROPERTY To Office of the Assistant Commissioner Customs & Central Excise Whereas you have not paid the amounting to Rs payable by you dated and the in respect of Certificate No....... forwarded by the Assistant Commissioner of Customs interest payable under Se....
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....orrect to the best of our observation and knowledge. 12345 1. 2. 3. 4. 5. Drawn before me OFFICE SEAL INVENTORY Dated Time Authorised Officer NAME IN BLOCK LETTERS DESIGNATION Inventory of movable properties attached at the premises of Sri Street No. of H. No. under Rule 5 of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995 while executing Warrant of attachment of movable issued by the Authorised Officer, Date towards realization of arrears of Government dues of due from Rs. executed by Shri 19 Authorised Officer between the hours and on Sl No. Description of the Article Estimated value in Rupees Witness:- Place where kept for safe custody (Name of the person, if Necessary) Sl. No. Name and address of Panch Signature Page 29 of 117 Drawn by me today the 19 At P.M. Signature of Defaulter: Signature of Authorised Officer Page 30 of 117 (1) (2) I/We S/O (2), Assistant APPENDIX III B PANCHANAMA ATTACHMENT OF IMMOVABLE PROPERTY Commissioner of on res....
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....erved upon you requiring you to pay the sum of Rs....... being the amount of Government Dues payable by you as per the terms of an order issued under Sec 28, 28AA, 47, 47(2), 61, 61(2), 75A and Sec 124 of the Customs Act, 1962, under sub-clause (ii) of clause (c) of Section 142(1) of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995. 2. (a) (i) Please take note that in terms of Rule 9 of the aforesaid Rules. you, or your representative in interest shall not be competent to mortgage, charge, lease or otherwise deal with any property belonging to you except with the written permission of the undersigned. (ii) where an order of attachment has been served on you as per the terms of Rule 5 of the above mentioned Rules, any private transfer or delivery of the property attached or of any debt, dividend or other moneys contrary to such attachment shall be void as against all claims enforceable under the attachment. (b) Further in terms of Rule 10 of aforesaid Rules, where belonging to you and/or another as co-owners, you are hereby prohibiting him from transferring the share or inter....
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....ng that an amount of Rs. is to be recovered by the undersigned from the defaulter; and the undersigned desires to attach sums of money or other property, which is included in the defaulter's property now in your custody;* I request that you will hold the said money or property and any interest or dividend becoming payable thereon subject to the further and other available details. (OFFICE SEAL) Yours faithfully, Authorised Officer (NAME IN BLOCK LETTERS) DESIGNATION Note: *Here state how the money or property is understood to be in the hands of the Court of the Public Officer addressed, on what account and other available details. Page 35 of 117 To APPENDIX - VII A ORDER OF ATACHMENT OF NEGOTIABLE INSTRUMENT Office of the Assistant Commissioner (Attaching Officer) Customs & Central Excise Whereas the undersigned the passed on the .day of........ .19 .an order for the attachment of the under mentioned property in the course of proceedings for the recovery of arrears due from...... respect of Certificate No... dated .(defaulter). In ....forwarded to the Authorized Officer by the Assistant Commissio....
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....ified copy of the said Certificate, specifying that an amount of is to be recovered by the undersigned from the defaulter; and is a partner in the firm known as Messrs.. Rs..... whereas the said. It is hereby ordered: (i) that the share of the said.. in the partnership property and profits of the said firm be and is hereby charged with the payment of the amount aforesaid due under the said Certificate; and (ii) *that... Given under my hand and seal at.. day of. .19. (OFFICE SEAL) this Authorised Officer (NAME IN BLOCK LETTER) DESIGNATION Note: *Here_incorporate any other order that may be considered necessary in the circumstance. # Score out portion in italics, if not applicable. Page 38 of 117 To 10 APPENDIX - VIII PROCLAMATION OF SALE Office of the Assistant Commissioner Customs & Central Excise Whereas the Assistant forwarded the Certificate No.. of the sum of Rs... Commissioner of Customs, dated .from... (defaulter) has for the recovery Which sum is recoverable together with interest in accordance with section 28AA, 47(2), 61(2), 75A and Sec. 124 of the ....
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....[**(ii) 3 The reserve price below which the property shall not be sold is Rs……….... .] (iii) The amounts by which the biddings are to be increased shall be determined by the officer conducting the sale. In the event of any dispute arising as to the amount bid, or as to the bidder, the lot shall at once be again put up to auction. 4 (iv) The highest bidder shall be declared to be the purchaser of any lot provided always that he is legally qualified to bid and provided further that the amount bid by him is not less than the reserve price. It shall be in the discretion of the undersigned to decline acceptance of the highest bid when the price offered appears so clearly inadequate as to make it inadvisable to do so. 1.[(v)] For reasons recorded, it shall be in the discretion of the officer conducting the sale to adjourn it subject always to the provisions of Customs (Attachment of Property of Defaulters for the Recovery of Customs dues) Rules 1995. [(vi)] In the case of movable property, the price of each lot shall be paid at the time of sale or as soon after as the officer holding the sale directs, and in default of ....
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....oms (Attachment of Property of Defaulters for the Recovery of Government Dues) Rules, 1995 for recovery of arrears from..... The full amount of the purchase money has been paid on... Accordingly the said sale is hereby confirmed. Given under may had hand and seal at 19 day of (OFFICE SEAL) .this Authorised Officer (NAME IN BLOCK LETTER) DESIGNATION Page 42 of 117 APPENDIX - X NOTICE TO INTERESTED PARTIES TO SHOW CAUSE WHY SALE SHOULD NOT BE SET ASIDE Το Office of the Assistant Commissioner Customs & Central Excise dated... Whereas the under mentioned property was sold on the ..in execution of Certificate No..... forwarded by the Assistant Commissioner of Customs.. recovery of arrears from………….. (defaulter) day of for And whereas.. has applied to the undersigned to set aside the sale under rule 20 of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995. Take notice that if you have any cause to show why the said application should not be granted, you should appear with your proofs before the undersigned when ....
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.... F.No.401/243/2006-Cus.III January 10, 2007 Subject: Customs- Coercive action for recovery of arrears 1. The Comptroller and Auditor General of India (C&AG) has undertaken a draft review on “Adjudication and Appeal Cases (Customs)†for inclusion in the report of the C&AG for the year 2005-06 (Performance Audit). C&AG has recommended that the Board should consider fixing time limit for paying duty on confirmation of demand beyond which coercive action can be taken. 2. The Board has accepted this recommendation of the C&AG. The Board has already issued a detailed circular regarding initiation of coercive action for the recovery of Central Excise duties under its Circular 788/21/2004-CX dated 25 May 2004 issued from F. No. 208/41/2003-CX.6. The instructions contained in this Circular would apply mutatis mutandis for the recovery of customs arrears as well. 3. The field formations may be suitably informed. 4. The receipt of the circular may be acknowledged. 5. Hindi version will follow. Page 46 of 117 LEGAL PROVISIONS OF RECOVERY OF ARREARS OF CENTRAL EXCISE CENTRAL EXCISE ACT 1944 SECTION 11 In respect....
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....relating to offences and appeals shall, with such modifications and alterations as it may consider necessary or desirable to adapt them to the circumstances, be applicable in regard to like matters in respect of the duties imposed by section 3. SECTION 142 (1) (b) & 142 (1) (c) (ii) OF CUSTOMS ACT, 1962 AS MADE APPLICABEL TO LIKE MATTERS IN CENTRAL EXCISE VIDE NOT.NO. 68/63-CE DATED 04.05.1963, AS AMENDED (REFER PAGE 2) Page 47 of 117 Notification No. 68/63-C.E., dated 4th May, 1963 as amended by Notifications No. 9/65-C.E., dated 6th February, 1965; No. 46/68-C.E., dated 23rd March, 1968; No. 13/88-C.E. (NT.), dated 29-4-1988; No. 26/95-C.E. (N.T.), dated 6-6-1995 and No. 48/97-C.E. (N.T.), dated 2-9-1997. Notification under Section 12 (1) In supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) Central Excise No. 69/59 (G.S.R. No. 822 of 1959), dated the 18th July, 1959, the Central Government hereby declares that the provisions of sub-section (1) of Section 105, Section 110, Section 115 [excluding clauses (a) and (e) of sub-section (1)] clause (a) of Section 118, Sections 119....
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....nce to "goods which are sought to be removed in contravention of any of the provisions of the Central Excise Rules, 1944". 4. In the said clause (a) of Section 118, - the reference to "goods imported" shall be deemed to be a reference to excisable goods in respect of which any of the provisions of the Central Excise rules, 1944, has been contravened". 5. In the said Section 124, - the reference to "under this Chapter" shall be deemed to be a reference to under any of the provisions of the Central Excise Rules, 1944". 6. In clause (e) of sub-section (2) of Section 150, the reference to "any other law relating to customs" shall be deemed to be a reference to "any other law relating central duties of excise. Page 49 of 117 PROCEDURE FOR DEMAND/ RECOVERY OF DUES OF CENTRAL EXCISE, (AUTHORITY - CBEC'S EXCISE MANUAL OF SUPPLIMENTARY INSTRUCTIONS) 1. Recovery of dues 1.1 In the event the Government dues are not paid, the law provides for recovery thereof. For the recovery of dues action is to be taken under Section I 1 of the Central Excise Act. After exhausting the option of taking action as above, if dues remain un- recovered, act....
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....fication No. 12/2003-CE(NT) dated 1.3.2003, new sub rule (4) has been substituted under rule 8 of Central Excise Rule 2002. According to the new sub rule (4), provisions of Section 11 of the Act shall be applicable for recovery of the duty as Page 50 of 117 assessed under rule 6 and the interest under sub rule (3) in the same manner as they are applicable for recovery of any duty or other sum payable to the Central Government. To implement these provisions following guidelines are prescribed. The range superintendent, immediately on receipt of the ER-1 returns, shall identify the cases of default and record them in the register maintained by them. .Thereafter, the defaulters should be informed -to pay-the- amount of duty defaulted along with interest forthwith by a notice to be issued immediately for compliance (copy as per Annexure- A). • Simultaneously they should keep the notice, to be issued to the defaulter for his default in payment of the of the duty, ready, initiating the proposed action. (copy as per Annexure-B). In order to save time, they must use cyclostyled standard form of notice. In the event of the assessee's fai....
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....you failed to pay the same, the action for recovery of the Government dues will be intimated under the provisions of Sec. 11 of the Central Excise Act, 1944 read with Sec. 142 of the Customs Act, 1962. Submit all sale invoices pertaining to clearances made and covered by aforementioned ER-1 Yours faithfully, - Copy to Deputy Commissioner, Central Excise, Division SUPERINTENDENT CENTRAL EXCISE RANGE Page 52 of 117 To M/s. ANNEXURE B OFFICE OF THE SUPERINTENDENT OF CENTRAL EXCISE, RANGE F.No. Dt. has been forwarded to you And interest leviable Please take notice that the letter of even no. dated by this office for the recovery of an amount of Rs. thereon. Since no payment has been received against the said outstanding dues, the undersigned is authorized under sec. 11 of Central Excise Act, 1944 to recover the defaulted amount of along with interest, pertaining to the payment of C.Ex. Duty for the month Rs. of 2. You are hereby required to pay the amount aforesaid within seven days from the date of service of this notice. A copy of the Challan in form TR 6 is enclosed for the purpose. 3. You a....
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....sed officer", for the purpose of making recovery of Government dues in terms of Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995. The "authorised officer" will submit a monthly progress report to the Commissioner. 3. Where the Government dues have not been paid by any persons, the Assistant Commissioner of Central Excise should prepare a certificate under Rule-3 in the format specified under Appendix-I, clearly mentioning the amount due from such persons, and should send the same to the Commissioner of Central Excise / Customs having jurisdiction over the place in which such persons owns any movable or immovable property or resides or carries on his own business or has his bank accounts. 4. The Commissioner of Central Excise or the Commissioner of Customs as the case may be, would direct the concerned authorised officer to cause a notice, in the format given in Appendix-II, to be served upon such person requiring to pay the amount specified in the Page 54 of 117 certificate within 7 days of the notice. The authorised officer should thereafter take steps to realise the amount mentioned in the c....
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.... VI)to such court or the officer requesting that such property, and any interest or dividend becoming payable thereon may be held subject to the further orders of the authorised officer issuing the notice. In case there is any dispute relating to the question of title or priority between the authorised officer and any other person not being the defaulter who claims to be interested in such property by virtue of any assignment, attachment or otherwise, the same would have to be determined by the Court and not be the authorised officer. 6.5 If the defaulter does not pay the Government dues (together with the cost of detention of the property, and interest, if any) as mentioned in the Certificate. (Appendix-I), within a period of 30 days the authorised officer should obtain the Commissioner's order for realising the amount by sale of the defaulter's property in public auction. Page 55 of 117 6.6 Commissioners are competent to fix the reserve price in respect of any property of the defaulter to be sold in public auction and further order that any bid shall be accepted only on the condition that it is not less than such reserve price. They may util....
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....ty made in execution of a Certificate becomes absolute when the authorised officer makes an order confirming the sale. It is mandatory upon the authorised officer to make the order confirming the sale when the following conditions are fulfilled. i) When no application is made for setting aside a sale under Rule 20; Page 56 of 117 ii) (a) When such an application has been made and the same is disallowed by the authorised officer, and (b) the full sum of the purchase money has been paid. 7.6 The authorised officer can also make an order not confirming the sale but setting the same aside, if- i) an application under Rule 20 has been made and is allowed by him; ii) an application under Rule 20 has been made and all the conditions mentioned in the Rule are satisfied. Before setting aside the sale the authorised officer is required to give notice to the person(s) affected thereby which expression includes the defaulter, the auction purchaser, a transferee from the auction purchaser after the sale but before the same is confirmed. 7.7 The order of confirmation of sale of immovable property under Rule 21 should be in the form of Appe....
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....e 57 of 117 Certificate together with interest payable, if any. It may, however, be noted that in the case of sale of immovable property no disbursement should be made until the sale has been confirmed by the authorised officer under Rule-21 of the Rules. iii) if any balance remains after defraying the amount(s) mentioned at (i) and (ii) above, then out of such balance any amount recoverable from the defaulter under the Act which may be due upon the date of realisation of the sale proceeds shall be paid to the Assistant Commissioner of Central Excise to whom such payment is due. iv) The balance, if any, left over after making the payments(s) referred to at (i), (ii) and (iii) above shall be paid to the defaulter. 8.2 It is clarified that the date of distribution of sale proceeds consequent to which recovery is made, shall be construed as the date of payment of Government dues, for the purpose of calculating interest liabilities under Sec. 11AA or Sec. 11AB of the Central Excise Act, 1944/ Rule-571 and Rule-57U of Central Excise Rules, 1944. 9. It is also clarified that any subsequent amendment effected in section 142(1)(c)(ii) of the Cus....
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....7 Dated the APPENDIX - II (NOTICE OF DEMAND TO DEFAULTER) Officer of the Asstt. Commissioner of Customs & Central Excise Dated Το Please take notice that certificate No. the Assistant Commissioner of Central Excise and Central Excise, are given herein below:- dated had been forwarded by to the Commissioner of Customs for the recovery of an amount of Rs, details of which The said Commissioner has sent the said certificate to the undersigned who has been authorised by the said Commissioner under Section 142(1) (c) (ii) of the Customs Act, 1962, read with Rule 4 of the Customs Attachment of Property of Defaulters for Recovery of Customs Dues) Rules 1995, as made specifying that an amount of Rs .... is to be recovered from you. 2. Your are hereby required to pay the amount aforesaid within seven days from the date of service of this notice. 3. A copy of the challan in From TR 6 is enclosed for the purpose. 4. You are hereby informed that in case of default, steps would be taken to realise the amount in accordance with the provisions of the Customs (Attachment of Property of Defaulters for the recovery Gove....
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....y, belonging to you and and as co-owners. Given under my hand and seal at this day of 19.......... (OFFICE SEAL) Authorised Officer (NAME IN BLOCK LETTERS) DESIGNATION Page 62 of 117 Appendix - IIIA PANCHNAMA ATTACHMENT OF MOVABLE PROPERTY Panchnama drawn by the Panchas, in the presence of Shri Authorised Officer, of the Office of the Assistant Commissioner of Central Excise during the course of the execution proceeds of the Warrant of Notice Form no in the case of of No.. ….... who is a defaulter for non-payment of arrears of Government Dues in the File on the spot at House No Street No. of ………………………… at the time on 19 S.No. Name of Panch & father's Name Address Age Profession ........ (address in full) belonging to Shri Assistant We, the above mentioned Panchs, on being called by the above said Shri Commissioner of Customs & Central Excise, duly authorised by the Commissioner of Customs and Central Excise under Rule 4 of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) ....
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....of the property attached or of any debt, dividend or other moneys contrary to such attachment shall be void as against all claims enforceable under the attachment. (b) Further in terms of Rule 10 of aforesaid Rules, where belonging to you and/ or another as co-owners, you are hereby prohibiting him from transferring the share or interest or charging in any way. Given under may hand this OFFICE SEAL day of. 19. Authorised Officer (NAME IN BLOCK LETTERS) DESIGNATION Page 64 of 117 Το APPENDIX- V NOTICE OF ATTACHMENT A DECREE OF A CIVIL COURT Office of the Assistant Commissioner Customs & Central Excise Dated Sir, The Judge of the Court of .... Whereas (defaulter) has failed to pay the arrears due from him in respect of Certificate No.........dated forwarded by the Assistant Commissioner of Central Excise to the Authorised Officer (so authorised by the Commissioner of Central Excise to the Authorised Officer (so authorised by the Commissioner of Central Excise under Rule 4 of the Customs (Attachment of Property of Defaulters for recovery of Government Dues) Rules, 1995 amounting to Rs. a....
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.... or property is understood to be in the hands of the Court of the Public Officer addressed, on what account and other available details. Page 66 of 117 To APPENDIX - VII A Office of the Assistant Commissioner, Customs & Central Excise, (Attaching Officer) Whereas the undersigned has passed on the day of. 19 an order for the attachment of the under mentioned property in the course of proceedings for the recovery of arrears due from (defaulter) in respect of Certificate No. dated forwarded by the Assistant Commissioner of Central Excise to the Authorised Officer (so authorised by the Commissioner of Central Excise under Rule 4 of the Customs (Attachment of Property for Recovery of Government Dues) Rule, 1995 as made applicable to like matters in Central Excise by Notification No. 68/63-CE(NT) dt. 4.5.63, as amended, you are hereby directed to seize the said property and bring the same before me and hold the same subject to my orders. DETAILS OF PROPERTY Given under my hand and seal at this day of 19. (OFFICE SEAL) Authorised Officer (NAME IN BLOCK LETTERS) DESIGNATION Page 67 of 117 To (1) ....
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....orised Officer (NAME IN BLOCK LETTERS) DESIGNATION Note: *Here incorporate any other order that may be considered necessary in the circumstances. # Score out portion in italics, if not applicable. Page 69 of 117 To, PROCLAMATION OF SALE APPENDIX VIII Office of the Assistant Commissioner Customs & Central Excise Whereas the Assistant Commissioner of Central Excise the Certificate No...... from dated has forwarded for the recovery of the sum of Rs. ..... (defaulter) which sum is recoverable together with interest in accordance with Section for the period commencing immediately after the said date and the costs, charges and expense of the proceedings for the recovery thereof; And whereas the undersigned has ordered the sale of the attached property mentioned in the annexed schedule in satisfaction of the said Certificate; And whereas on the day of for the sale) there will be due there under a sum of Rs. interest; 19 (the date fixed including costs and Notice is hereby given that, in the absence of any order of postponement the said property shall be sold by public auction at said.. day o....
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....equate as to make it inadvisable to do SO. 1(v) For reasons recorded, it shall in the discretion of the officer conducting the sale to adjourn it subject always to the provision of Customs (Attachment of Property of Defaulters for the Recovery of Customs dues) Rules, 1995, as made applicable to like matters in Central Excise by Notification No. 68/63-CE(NT) dt. 4.5.63, as amended. (vi) In the case of movable property, the price of each lot shall be paid at the time of sale or as soon after as the officer holding the sale directs, and in default of payment, the property shall forthwith be again put up and resold. 2(vii) In the case of immovable property, the person declared to be the purchaser shall pay immediately after such declaration, a deposit of twenty-five per cent of the amount of his purchase money to the officer conducting the sale and, if default of such deposit, the property shall forth with be put up again and resold. The full amount of the purchase money payable shall be paid by the purchaser to the undersigned on or before the 15th day from the date of the sale of the property, exclusive of such day, or if the 15th day be a Su....
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....tral Excise To Whereas the under mentioned property was sold on the in execution of Certification No. Commissioner of Central Excise of Assistant from And whereas (defaulter) day dated forwarded by the for recovery of arrears has applied to the undersigned to set aside the sale under rule 20 of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995, as made applicable to like matters in Central Excise by Notification No. 68/63-CE(NT) dt. 4.5.63, as amended. Take notice that if you have any cause to show why the said application should not be granted, you should appear with your proofs before the under-signed on said application will be heard and determined. when the DESCRIPTION OF PROPERTY Given under my hand and seal at this day of 19. OFFICE SEAL Authorised Officer (NAME IN BLOCK LETTERS) DESIGNATION Page 74 of 117 CERTIFICATE OF SALE OF IMMOVABLE PROPERTY APPENDIX XI Officer of the Assistant Commissioner Customs & Central Excise This is to certify that Shri purchaser at a sale by public auction on the of Certificate No. ....
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.... the date of issue of certificate (8) (6+7+8) (9) Amount paid after issue of certificate or attachment of property (10) Amount recovered by sale of movable/ immovable property Amount of interest recovered covering the period till recovery was made Particulars of cases written off after the issue of certificate Remarks No. & Amount Date of Order (11) (12) 13(a) 13(b) 14 Page 77 of 117 LEGAL PROVISIONS OF RECOVERY OF ARREARS OF SERVICE TAX FINANCE ACT, 1994 SECTION 73 Recovery of Service tax not levied or paid or short levied or short paid or erroneously refunded (1) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the Central Excise Officer may, within one year from the relevant date, serve notice on the person chargeable with the service tax which has not been levied or paid or which has been short-levied or short-paid or the person to whom such tax refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice: Provided that where any servic....
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....xcise Officer shall determine the amount of service tax or interest not being in excess of the amount partly due from such person.†(3) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person chargeable with the service tax, or the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid : Provided that the Central Excise Officer may determine the amount of short payment of service tax or erroneously refunded service tax, if any, which in his opinion has not been paid by such person and, then, the Central Excise Officer shall proceed to recover such amount in the manner specified in this section, and the period of “....
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....ny amount in excess of the service tax assessed or determined and paid on any taxable service under the provisions of this Chapter or the rules made there under from the recipient of taxable service in any manner as representing service tax, shall forthwith pay the amount so collected to the credit of the Central Government. (2) (3) (4) (5) (6) Where any person who has collected any amount, which is not required to be collected, from any other person, in any manner as representing service tax, such person shall forthwith pay the amount so collected to the credit of the Central Government. Where any amount is required to be paid to the credit of the Central Government under sub-section (1) or sub-section (2) and the same has not been so paid, the Central Excise Officer shall serve, on the person liable to pay such amount, a notice requiring him to show cause why the said amount, as specified in the notice, should not be paid by him to the credit of the Central Government. The Central Excise Officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (3), determine....
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....e, no interest shall be payable and in other cases, the interest shall be payable on the whole amount, including the amount already paid. Explanation 1.—Where the amount determined under sub-section (4) of section 73A is reduced by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, the interest payable thereon under this section shall be on such reduced amount. Explanation 2. Where the amount determined under sub-section (4) of section 73A is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, the interest payable thereon under this section shall be on such increased amount. SECTION 73C. Provisional attachment to protect revenue in certain cases (1) Where, during the pendency of any proceeding under section 73 or section 73A, the Central Excise Officer is of the opinion that for the purpose of protecting the interests of revenue, it is necessary so to do, he may, with the previous approval of the Commissioner of Central Excise, by order in writing, attach provisionally any property belonging to the person on whom notice is served under sub-section (1) o....
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....(b) (i) the Central Excise Officer may, by notice in writing, require any other person from whom money is due or may become due to such person, or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central Government either forthwith upon the money becoming due or being held or at or within the time specified in the notice, not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount; (ii) every person to whom a notice is issued under this section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass Page 82 of 117 book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary; (iii) in a case where the person to whom a notice under this section is sent, fails to make th....
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.... up to five years. 10.2.2 Section 73(1A) provides for conclusion of adjudication proceedings in respect of a person to whom a notice is served under the proviso to sub-section (1) of section 73 (i.e. deliberate evasion of service tax), if such person voluntarily deposits the service tax demanded in full and the interest payable thereon under section 75 and penalty equal to 25%, of the service tax demanded, the adjudication proceedings can be treated as conclusive. Section 73A: Provides for voluntary payment by an assessee of any amount collected in excess of the service tax leviable or recovery of any amount as representing service tax, that has been collected by a person but not deposited with the Central Government. Section 73B: Enables the Central Government to collect interest or, the amount as determined under sub-section (4) of section 73A at a rate notified by the Central Government.( not less than 10% but not exceeding 24% p.a.) Section 73C: Provides for provisional attachment by Central Excise Officer of any property belonging to a person on whom notice is served under sub-section (1) of section 73 or sub-section (3) of secti....
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....try of Finance Department of Revenue Circular No. 103/06/2008-ST Central Board of Excise & Customs *** New Delhi, dated the 1st July, 2008 To Chief Commissioners of Central Excise & Customs (All) Chief Commissioners of Central Excise (All) Director General of Service Tax Director General of Central Excise Intelligence Commissioners of Service Tax (All) Commissioner (DPPR) [email protected] Sir/Madam, Subject: - Instructions regarding provisional attachment of property under section 73 C of the Finance Act, 1994-reg. Section 73C of the Finance Act, 1994 (hereinafter referred to as the Act) provides for provisional attachment of property for the purposes of protecting the interests of revenue during the pendency of any proceedings under section 73 or section 73A of the Act. 2. In this connection the following guidelines are issued to maintain uniformity in its implementation by field formations. (i) (ii) (iii) The proceedings for provisional attachment can be initiated only after issue of Show Cause Notice under section 73 or section 73A of the Act. During the pendency of the proceedings under ....
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....d. The said notice should also specify the condition that the noticee should not sell, transfer, mortgage, charge, lease or otherwise alienate or encumber the property specified in the notice, till the decision of the said notice. In case of proposal for provisional attachment of immovable property, the notice should also be sent to the concerned registration authorities with a direction not to allow any sale, transfer, mortgage etc., of the property. After due consideration of the materials before him, and after hearing the person, if such person so desires, the Commissioner of Central Excise may grant approval to the provisional attachment of the property and the Central Excise Officer before whom the proceedings under Section 73 or 73A of the Act are pending, may, by order in writing, attach the said property. The Commissioner shall grant such approval, or, where proceedings under section 73 or 73 A of the Act are pending before him, order the attachment of the property, within fifteen days of holding of personal hearing. A copy of the order of provisional attachment should be served by the Central Excise Officer in the same manner as pr....
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....ner. However, immovable property/ properties which is/are used for commercial purpose may be provisionally attached. Movable property should be attached only if the immovable property available for attachment is not sufficient to protect the interests of revenue. It should also be ensured that such attachment does not hamper normal business of the assessees. This would mean that inputs required for provision of a service should not be attached by the department. Attachment not to be excessive: Provisional attachment by arrest or distrain of the property shall not be excessive, that is to say, the property provisionally attached shall be of value as nearly as may be equivalent to that of the amount demanded in the proceedings under section 73 or section 73A of the Act. Attachment between Sunrise and Sunset: The provisional attachment of the property of the concerned person by arrest or distrain shall be made after sunrise and before sunset and not otherwise. Inventory: After provisional attachment of the property, the Central Excise Officer shall prepare an inventory of the property attached and specify in it the place where it is l....
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....are not adequate and that Board should prescribe a proforma which the Collectors may be asked to fill in addition to descriptive report while sending the proposals for the write off of the arrears of revenue. With a view to streamline the procedure and to avoid delays, the Board desire that your proposals for the write off of irrecoverable amounts of revenue may be sent in the proforma enclosed, under the signature of the Head of the Department. While care has been taken to make the proforma as exhaustive as possible any other information which Collector of Central Excise may think, is useful and relevant to be furnished in a descriptive form as a covering letter. Also while filling up the various columns in the proforma if any of them does not imply, please indicate the same. Enclosure: Proforma for sending proposals for write off of irrecoverable arrears of Central Excise Revenue 1. Name and address of defaulter. 2. Licence number. 3. Amount to be written-off 4. Brief facts of the case. 5. Date of issue of show cause notice and Date of adjudication of the case, with copy(ies) of adjudication order. 6. Date....
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.... and penalties imposed under Customs Act, 1962, Central Excise and Salt Act, 1944 and Gold Control Act, 1968 - delegation of enhanced powers :- I am directed to say that under the Delegation of Financial Powers (Second Amendment) Rules, 1990 published vide S. O. NO. 1469 dated 26.05.1990 in the Gazette of India, Part II, Section (3) and sub-section (ii), the powers of the Principal Collectors of Customs and Central Excise, & Collectors of Customs and Collectors of Central Excise have been enhanced as under :- Name of the authority Power delegated (iv)(a) Principal Collectors of Customs (a) Full powers and Central Excise for abandonment of irrecoverable amounts of fines and penalties imposed under Custom Act, 1962, Central Excise and Salt Act, 1944 and Gold Control Act, 1968 and (b) To write off irrecoverable amounts of Customs/Central Excise duties upto Rs.15 lakhs subject to a report to the next higher authority. (b) Collectors Central Excise. of Customs and (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under Customs Act, 1962, Central ....
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....o recover: Deducting such amounts from any money owing to the defaulter; ii) iii) iv) v) Attachment and sale of excisable goods belonging to the defaulter; If the goods belonging to a Central Excise defaulter are under the control of Customs officers anywhere in the country (including ports, ICDs, CFSs, Bonded Warehouses), such officers would be required to recover the said amount by detaining and selling such goods belonging to the defaulter; If the amount cannot be recovered by the aforesaid means, any movable or immovable property belonging to or under the control of the defaulter will be detained under Section 142 (1) (c) read with Customs (Attachment of Property of Defaulter for Recovery of Government Dues) Rules, 1995. If any dues are not paid within 30 days of the detention as above, the said property would be sold in the prescribed manner. Page 94 of 117 vi) vii) viii) Section 11 of the Central Excise Act also provides for recovery of dues by attachment and sale of all excisable goods, materials, plants and machineries, etc. in the custody or possession of a successor/transferee to whom the business or tra....
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.... 2. Copy to: Yours faithfully, Sd/- (Vinay Chhabra) Commissioner(Coord.) The Chief Commissioner of Customs, Central Excise and Service Tax, Lucknow, Lucknow Zone for information and necessary action. Shri S.C. Jana, Commissioner, Central Excise & Customs, Kanpur for information and necessary action. Page 95 of 117 Circular No. 396/29/98-CX dated 2/6/1998 F.No. 201/04/98-CX.6 Government of India Ministry of Finance, Department of Revenue Central Board of Excise & Customs, New Delhi Subject: Central Excise - Whether coercive measures to recover duty demanded as a result of adjudication till such time as the appeal/ stay applications filed by the appellant has been disposed of by Commissioner (Appeals) be taken- Regarding On the question of recovery of dues during pendency of stay application before the Commissioner (Appeal), the matter was examined by the Board and necessary instructions were issued vide Circular No. 23/90-CX.6 dated 12.12.1990 issued from F.No. 209/ 107/89-CX.6 and Circular No. 16/92-CX.6 dated 12.11.1992 issued from F.No. 208/59/92-CX.6. According to these instructions, Central Excise Off....
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....f communication of the order. In respect of Orders-In --Original of Commissioners where the first appeal lies with the Tribunal and no stay application is filed along with the appeal, the aforesaid time period would be 90 days. b Where conditional stay orders are issued specifying the time limit for fulfillment of the ) conditions but conditions are not fulfilled as per the directions of the Tribunal or Commissioner (Appeals), as the case may be, recovery proceedings should be initiated immediately after the lapse of the time period prescribed in the appellate stay order for fulfillment of the conditions. In respect of stay applications pending against the Orders-In Original of the Commissioners before the CESTAT a view similar to Board 's Circular No.396/29/98- CX dated 2.6.1998 should be taken. The two provisos to Section 35C(2A) of the Central Excise Act, 1944 read as follows: "Provided that where an order of stay is made in any proceeding relating to an appeal filed under sub-section (1) of section 35B,the Appellate Tribunal shall dispose of the appeal within a period of one hundred and eighty days from the date of such order: Provid....
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....o that action is initiated as per guidelines. 3. There should be no reason to show arrears of revenue pending Certificate Action for years on end. If despite efforts by District Authorities and our Recovery Cells, Govt. dues are not recoverable, the matter should be taken up for write off as per the powers indicated in Schedule VII of the delegation of Financial Powers Rules, 1978, read with Ministry's instructions on the issue. 4. You are, therefore, requested to review all pending cases of Certificate Action of your jurisdiction immediately for initiating necessary action as mentioned above. The progress made in the transfer of cases to the Recovery Cells and also the performance of these cells will be monitored by the Board through the MTRs for which guidelines have already been issued vide Page 99 of 117 Director General of Inspection (Customs and Excise) D.O. F.No. 585/7/2000 dated 14-09-2000, to report such cases separately in the MTR's. 5. The Board will also like the other cases involving arrears of revenue not being stayed for recovery where the parties are not paying the dues to exchequer despite all efforts and where coercive ....
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....hillong, Bhubaneswar Customs Zones Delhi, Delhi (Prev) Ahmedabad Mumbai-I,II & III Chennai, Chennai (P), Bangalore Kolkata, Patna (P) * This will also include the Customs arrears recovery pending in the Central Excise Zones. Seven Joint Commissioners / Senior Deputy Commissioner level officer to be posted exclusively to assist the Chief Commissioner (TAR) and the six Nodal Officers as above. 1.2 Adequate manpower and office / equipment support shall be provided to the Task Force & Nodal Officers by the Chief Commissioners of Central Excise at the six locations. In Mumbai, the same shall be done by Chief Commissioner (Central Excise), Mumbai-I. 2. The Task Force shall review the position of arrears of revenue of Central Excise and Customs and finalise and implement the strategy for realisation of arrears with the objective of meeting the targets. 3. The strategy for arrears realisation by the Task Force would include: (i) (ii) Cases Before CESTAT Considering the large pendency before the CESTAT, the key area to focus in the current year would be cases pending with CESTAT (including those filed in the coming m....
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....tation of the department's cases. (ix) (x) (xi) DRs would also be responsible for conveying the decisions on all such applications to the jurisdictional Commissioners under intimation to the zonal Chief Commissioner and the concerned Nodal Officer. The particulars of orders (final orders as well as order for pre-deposit) passed by the Tribunal in favour of revenue will be circulated by the CDR / Jt. CDR immediately to the field formations under intimation to the Chief Commissioner (TAR) and the concerned Nodal Officer who shall follow up till the arrears are realised. Recovery position should be reviewed by the Nodal Officers every month. The jurisdictional Commissioners will immediately review all conditional stay orders passed by the competent authorities to check whether the conditions of stay orders are fulfilled. If not fulfilled, the jurisdictional Commissioners will ensure immediate realisation. The concerned Nodal Officer will test-check compliance in this behalf in each Commissionerate by initial inspections in all the Commissionerates in his charge and thereafter by periodical inspections / interaction with jurisdictional....
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.... under the aforesaid legal provisions will be with the jurisdictional Commissioner. (xix) For the facility of officers, the broad stages for recovery under the aforesaid provisions of law are as under. (a) (b) (c) (d) (e) (f) Deducting such amounts from any money owing to the defaulter; Attachment and sale of excisable goods belonging to the defaulter; If the goods belonging to a Central Excise defaulter are under the control of Customs officers anywhere in the country (including Ports, ICDs, CFSs, Bonded Warehouses), such officers would be required to recover the said amount by detaining and selling such goods belonging to the defaulter; If the amount cannot be recovered by the aforesaid means, any movable or immovable property belonging to or under the control of the defaulter will be detained under Section 142(1) (c) read with Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules 1995. If any dues are not paid within 30 days of the detention as above, the said property would be sold in the prescribed manner. Under Clause 70 of the Finance (No.2) Bill 2004, a proviso is proposed to be ....
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....reet investigations will be made from the neighboring persons, trade rivals, market and other concerned Government departments whether any other place of business of the defaulter anywhere in India exists. If yes, action will be extended to such place. Discreet investigations should also be made about his Bank accounts or any possible clues with the Banks. (xxiii) If even after the above action the defaulters remain untraceable and assets not available, zonal Chief Commissioners will send case-wise particulars to the DGRI / DGCEI, as the case may be, under intimation to the concerned Nodal Officer. The help of such intelligence agencies will be taken for further pursuing such cases. The Nodal Officer will review action for locating the defaulters or assets in accordance with the law and co- ordinate so that the investigations by the said intelligence agencies are quickly completed and results intimated to Chief Commissioners. The officers of these Directorates General will use their resources in locating such persons and their property anywhere in the country and for this purpose, they may, inter-alia, take the help of income-tax authorities ....
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....004-CX.9 (Pt.) dated 12.8.2004, that too in the Performa already prescribed vide Board letter F.No. 290/4/85/CX-9 dated 23.3.1985. 2. The Board vide letter F.No. 296/34/2008-CX-9 dated 20.03.2008 has further advised that the procedure step by step as are enclosed herewith (Annexure 'A') have to be followed with respect to recovery of arrears which have become difficult to recover. 3. It is accordingly advised that any case for write off of revenue/penalty may be sent to the Board after following the directions/guidelines enclosed herewith in proper proforma. It is needless to repeat that only those matters wherein revenue involved is more than Rs.15 lakhs would be referred to the Board for write off. B.R. Tripathi Commissioner (TAR) GUIDELINES / PROCEDURE FOR WRITE OFF/ ABANDONMENT OF IRRECOVERABLE AMOUNT OF ARREARS OF REVENUE • Deducting such amounts from any money owing to the defaulter; • • • • Attachment and sale of excisable goods belonging to the defaulter If the goods belonging to a Central Excise defaulter are under the control of Customs officers anywhere in the country (including ....
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....such persons and their property anywhere in the country and for this purpose, they may, inter-alia, take the help of income tax authorities whose database may also be useful. The Nodal officer will do monthly monitoring of such references and results of the investigations. DGRI and DGCEI may have a special cell in their headquarters for attending to such references and ensuring immediate action and reporting of results by field units. Page 108 of 117 Reward to informers for recovery from tax defaulters M.F. (D.R.) Letter F.No.13011/3/2004-CUS(AS) dated 12-08-2005 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject:- Grant of Reward to informers in cases of recovery from tax defaulters – Reg. I am directed to refer to Ministry's F.No. R-13011 / 6 / 2001-Cus (AS) dated the 20th June, 2001 communicating the guidelines in respect of grant of reward to informers and Government servants and to state that it has been decided to extend the reward scheme to cases of recovery from tax defaulters. The provisions in this regard are as follows: (i) The reward scheme shall b....
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....e property of defaulter as per the Customs (Attachment of property of Defaulter for Recovery of Government dues) Rule, 1995 a Revenue Recovery Cell in the Office of the Commissioner of Customs (Import) has been formed in the Jawahar Custom House to effectively monitor the progress & finally recover the arrears of Custom House duty, fine and penalty from the defaulters who have failed to pay it so far for cases pertaining to Commissionerate of Import. The following procedure is prescribed for the recovery of arrears of Customs Revenue comprising of Customs duty, fine and penalty etc. by the Jawahar Customs House, Commissionerate of Import. 2. After the issue of order confirming less charge demands under Section 28(1) of the Customs Act, 1962, and/or issue of Order-in-Original the concerned Group shall wait for the appeal period to be over. After the expiry of appeal period, AC/DC Group shall take steps including issue of Detention Orders to recover the amount payable by the Importer and others in terms of Section 142(1) (a) or (b) of Customs Act, 1962, In case the Group AC/D.C. fails to recover the arrears in this manner certificate u/s 142 ....
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....in Appendix I, the District Authorities should be informed by the AC/DC Group through a registered AD letter to discontinue recovery and a Certificate in Appendix I should be sent to Revenue Recovery Cell for initiating recovery action under sub clause (ii) of Section 142(1) (c) in case the defaulter's property is located within Mumbai, Thane and Raigad Dist. In all other cases, the certificate in Appendix I, should be forwarded to the respective Jurisdictional Commissioner of Customs and C. Excise. 6. After the receipt of certificate in Appendix I from the concerned Groups along with copies of Order-In-Original and other documents mentioned in preceding paragraphs a file no. shall be allocated by the Revenue Recovery Cell to each such case. 7. The Revenue Recovery Cell shall be headed by an Asstt./ Dy. Commissioner of Customs, who will be the proper officer for the purpose of attachment of the defaulter's property and for realizing the amount mentioned in the Certificate. Upon receipt of the certificate from the Appraising Group/Section the Revenue Recovery Cell shall issue a letter to the defaulter bringing to his/her notice the provision....
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....movable, shall be attached by following procedure prescribed in Chapter II and III of the Customs (Attachment of Property of Defaulters for Recovery of Govt. dues) Rules 1995. For this purpose notice of demand, or of attachment of immovable property and notice of attachment of other assets etc. shall be issued in the relevant formats prescribed in the Hand Book of Recovery of Arrears of Customs Revenue published by the Directorate of Publicity and Public Relation Customs & C. Excise, New Delhi. 11. If the amount mentioned in the certificate together with the cost of detention of the property is not paid within the period of 30 days from the date of attachment of the property, the Commissioner may authorize the proper officer to proceed to realize the amount by the sale of defaulters' property by public auction. For the purpose of sale of attached property, AD/DC shall be the proper officer for selling the property and the procedure prescribed in Chapter III of the Customs (Attachment of Property of Defaulters' for Recovery of Govt. dues) Rule, 1995 as well as instructions contained in the Hand Book of Recovery of Arrears of Customs Revenue ....
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....rest memo, then the present address at which he is available. Details of property and bank accounts, Copy of Order-in-Original, appellate order if any with certificate that the said order has attained finality. d) Steps that were taken to recover the government dues including copy of Detention Notice. 4. In case the property of the defaulter is located outside the jurisdiction of this Commissionerate, then Assistant/Deputy Commissioner of Customs will send the Certificate directly to Commissioner of Customs/ Commissioner of Customs & Central Excise in whose jurisdiction the property is located under intimation to the Recovery Cell of the Commissionerate. Page 114 of 117 5. On receipt of the certificate, it shall be entered in the register and further action to be taken by Assistant/Deputy Commissioner of Customs, Recovery Cell in terms of Handbook on Recovery of Arrears of Customs Revenue. 6. Certificate in Appendix II (Copy enclosed) signed by Assistant/Deputy Commissioner of Customs, Recovery Cell will be served upon the defaulter by a team of Preventive Branch of the Commissionerate. 7. In cases where certificate has been ....