Circular No. 552/48/2000-CX

Dated 4-10-2000

F.No. 238/2/98-CX-7

It is directed to say that while examining reports received from all the Commissioners in response to PAC”s Advance Questionnaire on Audit Para 2.5/97-98, relating to steps taken for recovery of confirmed demands, it is observed that the powers acquired for attachment and sale of defaulters property under the Customs (Attachment of Property of Defaulters for recovery of Government dues) rules, 1995, as made applicable to the Central Excise, are not being effectively utilised. On the other hand a large number of cases, in 1999and earlier years, some even as old as five years, were referred to District Collectors for recovery under Certificate Action and these are reported to be still pending recovery. Brief summary, year-wise, is indicated below:


No. of cases

Amt. to be recovered under Certificate Action

Amt. Recovered till 31.12.99

Percentage of Amount recovered

95-96 576 5653.95 118.16 2
96-97 226 859.63 34.46 4
97-98 328 3412.16 116.60 3
98-99 216 2117.33 22.09 1
4/99 to 12/99 7236 6205.38 16.48 0.27
Total 8582 18248.45 339.9 1.86

2. Board desires that all cases, of 1999 and earlier years already referred to District Authorities, where there is no effective action or response, should be referred to Recovery Cell of the Commissionerate where the assessee may have, as per available information, some movable/immovable property so that action is initiated as per guidelines.

3. There should be no reason to show arrears of revenue pending Certificate Action for years on end. If despite efforts by District Authorities and our Recovery Cells, Govt. dues are not recoverable, the matter should be taken up for write off as per the powers indicated in Schedule VII of the delegation of Financial Powers Rules, 1978, read with Ministry”s instructions on the issue.

4. You are, therefore, requested to review all pending cases of Certificate Action of your jurisdiction immediately for initiating necessary action as mentioned above.  The progress made in the transfer of cases to the Recovery Cells and also the performance of these cells will be monitored by the Board through the MTRs for which guidelines have already been issued vide Director General of Inspection (Customs and Excise) D.O. F.No. 585/7/2000 dated 14-09-2000, to report such cases separately in the MTR”s.

5. The Board will also like the other cases involving  arrears of revenue not being stayed for recovery where the parties are not paying the dues to exchequer despite all efforts and where coercive measures like Rule 230 action has not yielded results and where amounts involved are significant, to be taken up for action by Recovery Cells in future rather than being transferred to District Authorities as being done in routine hitherto.

6. Some further guidelines in this regard are being issued separately.

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