Guidelines for arrest in relation to offences punishable under the Finance Act, 1994 and Central Excise Act, 1944

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.... Principal Commissioners/Commissioners of Central Excise/Service Tax All Principal Additional Directors General/ Additional Directors General Audit Madam/Sir, Subject: Guidelines for arrest in relation to offences punishable under the Finance Act, 1994 and Central Excise Act, 1944 I am directed to draw your attention to the fact that the arrest provisions in Service Tax were introduced with effect from 10.05.2013 vide sub-sections (J) and (K) of section 103 of the Finance Act, 2013 which introduced sections 90 and 91 in the Finance Act, 1994 and also amended section 89 of the Finance Act 1994. Vide sections 155, 156 and 157 of the Finance Act 2016, with effect from 14.05.2016, sections 89, 90 and 91 of the Finance Act, 199....

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.... the ingredients of the offence have been established. The notings must specifically refer to evidence relating to- 4.1.1 Amount collected as service tax: Collection of an amount as service tax should be clear and self-evident from the invoices, bills, contracts, etc. An amount should be clearly indicated as service tax. The copies of sample invoices /bills, contracts, etc. which cover the period being investigated should be in the file. 4.1.2 Amount should exceed Rs. 2 crore. 4.1.3 Failure to pay the amount so collected to the credit of the Central Government: The ST3 return filed by the assessee for the relevant period, showing the self-assessed value of taxable services and service tax paid should be available in file. Where no ....

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....ed tax, then the need to arrest may not arise. 6.0 The Guidelines issued vide Board Circular F.No. 137/47/2013-Service Tax dated 17.09.2013 may be referred to for the procedure for arrest, post-arrest formalities and the reporting system. 7.1. It has been decided to revise the monetary limits for arrests and prosecution in Central Excise to maintain uniformity of practice in Central Excise and Service Tax. It is directed that henceforth arrest and prosecution of a person in relation to offences specified under clause (a) to (d) of sub-section (l) of section 9 of the Central Excise Act, 1944 may be considered only in cases where evasion of Central Excise duty or misuse of CENVAT Credit is equal to or more than rupees two crore. Central....