TaxTMI 
TaxTMI 
Deterrent measures where duty is paid wrongly or where cenvat facility is misutilized
X X X X Extracts X X X X
X X X X Extracts X X X X
....ernment of India in the Ministry of Finance, Department of Revenue, No. 32/2006-Central Excise (N.T), dated the 30th December, 2006, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide G.S.R number 782 (E) dated the 30th December, 2006, the Central Government, hereby declares that where a manufacturer, first stage or second stage dealer, or an exporter including a merchant exporter is prima facie found to be knowingly involved in any of the following,- (a) removal of goods without the cover of an invoice and without payment of duty; (b) removal of goods without declaring the correct value for payment of duty, where a portion of sale price, in exc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) the monthly payment of duty of excise may be withdrawn and the assessee shall be required to pay duty of excise for each consignment at the time of removal of goods; (ii) payment of duty of excise by utilisation of CENVAT credit may be restricted and the assessee shall be required to pay duty of excise without utilising the CENVAT credit; (iii) the assessee may be required to maintain records of receipt, disposal, consumption and inventory of the principal inputs on which Cenvat credit has not been taken; (iv) the assessee may be required to intimate the Superintendent of Central Ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; (iii) "principal inputs", means any input which is used in the manufacture of final products where the cost of such input constitutes not less than 10% of the total cost of raw materials for the manufacture of unit quantity of a given final products. (2) Where a first stage or second stage dealer is found to be knowingly involved in committing the type of offence specified at clauses (d) or (e) of para 1, the officer authorized by the Central Board of Excise and Customs may order suspension for a specified period, the registration granted under rule 9 of the Central Excise Rules 2002. (3) During the period of suspension, t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a proposal to the Chief Commissioner or Director General of Central Excise Intelligence, as the case may be, to withdraw the facilities and impose restriction during or for such period, within 30 days of the detection of the case, as far as possible. (2) The Chief Commissioner of Central Excise or Director General of Central Excise Intelligence, as the case may be, shall examine the said proposal and after satisfying himself that the records and evidence relied upon in the said proposal are sufficient to form a reasonable belief that a person has knowingly done or contravened anything specified in para 1, may forward the proposal along with his recommendations to the Central Board of Excise and Customs: provided that the Chief Commis....