INTRODUCTION
General importance of Adjudication: – Adjudication of offences under the Central Excises Act, 1944, or the Customs act 1962 or the Finance Act, 1994 (Service Tax) are important functions of the officers of the Central Excise, Customs and Service Tax competent to adjudge offences. It seeks to ensure that no economic loss is caused by the alleged contravention by the imposition of an appropriate penalty after an adjudication. If an innocent person is punished or the punishment is more than warranted by the nature of offence it may undermine the trust between the government and the public. If, on the other hand, a real offender escapes the punishment provided by law, it may tend to encourage commission of offences to the detriment both of the government and the honest tax payers.
The authorities exercising quasi-judicial function are duty bound to justify their existence and carry credibility with the people by inspiring confidence in the adjudicatory process. The public is entitled to have assurance that process of correction is in place and working. It is the requirement of law that correction process of judgments should not only appear to be implemented but also seem to have been properly implemented. These functions, therefore, cast a heavy responsibility on the officers invested with the powers of adjudication and confiscation to use it with utmost care and caution, free from any prejudice or bias, so that the innocent does not suffer by any injustice done to him and the real offender does not escape the punishment provided by law.
Central Excise, Customs and Service Tax laws are self-contained laws. Besides containing the provisions for levy of duty, adjudication of matters relating to the provision of the Law is also provided for in the legal provisions e.g. for demand of duty, credit availed, determination of classification, valuation, confiscation and imposing penalty. The adjudication is done by the departmental officers, and in this capacity they act as quasi-judicial officers. It is an important function of the officers and casts heavy responsibility on the officers invested with the powers of adjudication to use it with utmost care and caution, free from any prejudice or bias. It is important to know and understand the facts of the case, processing them properly and to apply correctly the sections and rules of Central Excise law or Notifications that may be relevant to the facts of each case. Care should be taken to ensure that wrong sections of acts are not applied to a case which attracts some other provisions of law.
Scope of Instructions:-
The instructions contained in this Manual are for the guidance of the Departmental Officers competent to adjudicate offences and confiscate goods under the Central Excises Act, 1944, the Customs Act, 1962 and the Finance Act, 1994 (Service Tax) and rules made thereunder. Besides ensuring uniformity across the length and breadth of the country, these instructions seek to achieve two objectives (a) that the principles of natural justice are fully observed in substance and in form, and (b) that an offender does not escape due to technical and/or procedural defects. All officers charged with the function of adjudication of offences and confiscation of goods under the Act and Rules mentioned above must, therefore, follow these instructions so that any lapses, wherever they exist, in the mode and procedure of adjudication are avoided. These instructions are supplemental to, and should be read in conjunction with the Central Excises Act, 1944 and the rules framed thereunder; the Customs Act, 1962 and the rules framed thereunder; and, the Finance Act, 1994 (Service Tax) and the rules framed thereunder and other supplementary instructions issued under the said Acts and Rules, and should not be departed from without strong reasons to be recorded in writing by the officer concerned; any such departure must be reported immediately by the officer concerned to his immediate superior. The Commissioner of Central Excise/Customs/SERVICE TAX should ensure that any departure from these instructions should immediately be reported to the Zonal Chief Commissioner.
