Circular No. 501/67/99-Central Excise

dated 15/12/1999

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

Subject : Central Excise – Procedure for payment of Central Excise duty in the event of failure of computer system due to Y2K problems – Instructions regarding

I am directed to say that the Board has drawn a contingency action plan to deal with any failure of computer system of the banks on account of Y2K problems so that the clearances of dutiable goods are not withheld. Indeed, all the banks have been trying to become Y2K compliant and normally it is expected that the banking system will not be adversely affected. Moreover, the date of occurrence of Y2K problem, if at all it occurs, is Known in advance, i.e. the 1st January 2000. The assassees will be in a position to take precautionary measures themselves, well in advance, by ensuring sufficient balance in their Personal Ledger Account (PLA) by depositing the money in the authorized bank. Therefore, it has been decided that every assessee must take this precaution and keep sufficient balance in PLA/Modvat account to cover the clearances of 3-4- days on payment of duty.

2. However, in the event of any failure of computers of the bank of the assessee and non-availability of any alternative arrangements, say manual working in that bank or any other authorized bank(s) within a Commissionerate (i.e. if there is stoppage of transactions/business)beyond a period of three days from 1st January, 2000 (inclusive), the Board has decided that the procedure/instructions contained in Board”s Circular No. 480/46/99-CX dated 23rd August, 1999 should be followed. If there is any failure of any assessees” own computers due to Y2K problem, in case he maintains/generates records or documents using computers, manual maintenance/preparation of records/documents will be allowed.

3. The Commissioners are requested to keep close watch on the situation and be in touch with the concerned authorized banks to ensure that no undue advantage is taken under this procedure. The assessee shall discontinue the deposit under this procedure immediately after the aforementioned Y2K problem is resolved. In the event of occurrence of this problem, the Chief Accounts Officer should be temporarily provided with sufficient staff and the working of this section, relating to payment of duty/other dues through cheques, should be closely monitored by Commissioner.

4. Any other difficulties noticed in this should be brought to the notice of the Board immediately.

5. The field formations may suitably be informed.

6. Receipt of this Circular may please be acknowledges

7. Hindi version will follow.

Under Secretary (CX.6)

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