Circular No. 298/14/97- Central Excise

dated 25/2/97

F.No. 199/118/96-JC (BMB)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi

Subject:  Assessments whether provisional need for verification before issuing Show Cause Notice and passing the adjudication order -Reg.

I am directed to say that a case has come to the notice of the Board wherein a Show Cause Notice was issued for demanding duty for a period of five years and the Commissioner while adjudicating the case held that the demand was time barred as there was no suppression of facts etc. The Commissioner”s order was sent for review to the Board. Subsequent enquiries made by Board revealed that the assessments in the case were provisional and, therefore, the question of limitation of time could not arise in this case. It appears that this mistake had occurred since all relevant facts were not mentioned in the Show Cause Notice and the same were not ascertained at the time of adjudication of the case against the revenue even though the revenue involved was very substantial.

2. The Board desires that the concerned officers should take appropriate note of the above instance to ensure that such instances do occur.

(M.K. Gupta)
Director (Review)

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