Circular No. 452/18/99-CX
Government of India
Ministry of Finance, Department of Revenue,
Central Board of Excise and Customs, New Delhi
Subject : Modifications of Board”s Circular No. 410/43/98-CX dated 30.7.98 regarding – Finalization of pending assessments
I am directed to invite reference to Board”s Circular No. 410/43/98-CX dated 30.7.98 regarding finalization of pending assessments on the basis of orders issued by Central Board of Excise and Customs under Section 37B. It was clarified that an order issued under Section 37B has only prospective effect from the date of its issue, however, demands can be raised for the last six months under section 11A of Central Excise Act, 1944.
2. The matter has since been re-examined by the Board. It has been observed that question as to whether demand arising from a change in classification accrues from the date of show cause notice or from the past period as provided under Section-11A of the Act, is before the Larger Bench of Supreme Court, in case of Cotspun Ltd. (Ref : 1998(99) ELT24(SC). Pending the decision of Larger Bench Board has decided that the demand notices under Section11-A may be issued in pursuance of Sec. 37B order but not be enforced.
3. Board has also decided that every order issued under Section 37B of the Act shall be published and offered for sale on the date of its issue by the Directorate of Publicity & Public Relations, (Customs & Central Excise) New Delhi. Unless otherwise provided, every such order issued under Section 37B shall come into force on the date of its issue. The Commissioners of Central Excise, may simply circulate the 37B Order for the information of trade and all other persons employed in the execution of the Act.
4. Para-3 of the Circular dated 30.7.97 may be treated as deleted.