Circular No. 480/46/99-CX
Government of India
Ministry of Finance
Department of Revenue,
Central Board of Excise & Customs, New Delhi
Subject : Central Excise – Procedure for deposit of Central Excise duties/other dues during strikes, Prolonged holidays or sudden closure of banks (e.g. sudden strikes, natural calamities) etc.
I am directed to say that the procedure specified below should be followed without any deviation for collection of central excise dues during the strikes, prolonged holidays or sudden closure of banks (e.g. sudden strikes, natural calamities, riots, imposition of curfew, etc.) :
2. Normally in all cases of closure of bank business due to strike by bank employees, the Public gets advance intimation either through the press, or otherwise. In all such cases, the Commissioner should issue suitable Trade Notice to assessee requiring them to make advance arrangements to deposit money into the banks and keep sufficient amounts in their P.L. As so that they do not face any difficulty in the clearance of the goods during period of the strike.
3. In cases, where the strike of bank employees is without notice, or where the strike called for after due notice is prolonged beyond a reasonable time (say over 3-4 days) or where there is sudden closure of banks due to riots, imposition of curfew or natural calamities such as flood, cyclones etc., the Commissioner may adopt the procedure specified hereinafter in partial relaxation of provisions contained in the “Manual for collection of Revenue and payment of refunds etc. (hereinafter referred to as “Manual”)” only for duration of the strike or the sudden closures.
- In case of strike or closure of business, the Commissioners should issue a Trade Notice stating that during the days of the closure of bank business due to such strikes (specifying the dates wherever possible), the assessees can send their cheques by registered post, acknowledgement due (R.P.A.D.) or special messenger, with the TR-6 challans (in quadruplicate) duly filled in, to the Chief Accounts Officers of the Commissionerates, with a clear declaration that they have sufficient balance in their bank account.
- They should be advised to send a copy of the letter forwarding the cheque, to the concerned Range Officer also.
- On the strength of a cheque so sent, they may take credit in the P.L. As and clear the goods.
- On receipt of the cheque in his office, the Chief Accounts Officer will immediately intimate the concerned Range Officer about the name of the assessee, the number and date of the cheque and its amount.
- Immediately after the strike is over, all such cheques should be deposited by the Chief Accounts Officer into the Focal Point Bank/State Bank of India at the Headquarters or Reserve Bank of India, as the case may be, through TR-6 challans (in quadruplicate) according to the procedure prescribed in the Manual.
- The Duplicate/Triplicate copies of the receipted challans will be sent by the Chief Accounts Officer to the Assessees and the quadruplicate copy to the R.Os concerned to enable them to exercise necessary checks and prepare the monthly statement of revenue.
- Bank commission or collection charges, if any, chargeable by the banks should be debited in the P.L.A. of the assessees by the Chief Accounts Officer under intimation to them as also the R.Os.
- If any of the cheques sent by the assessees are dishonored, the Commissioners should take appropriate penal action as prescribed under the rules.
- The Chief Accounts Officer should maintain a suitable record in regard to receipt and disposal of such cheques.
4. For removal of doubts and to ensure uniformity of application of the procedure laid down in Para 3 above, it is further clarified that:
- The said procedure is to be followed only when all the banks nominated to collect revenues within a Commissionerate are unable to transact business, due to strike of banks or sudden closure of banks due to riots, imposition of curfew or natural calamities such as flood, cyclones, etc.
- The payment of duty/other dues through cheques should not be permitted in the following cases :
- If there is a strike in or closures of only nominated bank of the Commissionerate and the assessee still remains in a position to deposit money in the other nominated banks of Departmental Treasury (wherever they exist) – unless the assessees bank is the only nominated bank in the Commissionerate.
- In the case of declared Bank holidays because such holidays are know well in advance.
- Where the Public has been given advance intimation of a strike, unless the strike is unduly prolonged (say over 3-4 days).
- Where Bank employees adopt “go-slow” tactics.
5. It is reiterated that there should not be any deviation from these instructions unless a prior approval of the Board is obtained.
6. Board”s Circular No. 9/80-CX.6 dated 14.4.80, as modified by Circular No. 18/81-CX.6 dated 18.2.81 and Board”s letter of F.No. 205/2/89-CX.6 dated 20.8.96 are hereby superseded.
(P K Sinha)
Under Secretary (CX.6)